Sunstone Partners Announces the Closing of the Sale of Thirdera, the Largest Independent Global Pure-Play ServiceNow Consultancy, to Cognizant
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The acquisition of Thirdera by Cognizant represents a strategic move within the IT services and consultancy sector, aiming to bolster Cognizant's capabilities in the rapidly growing ServiceNow ecosystem. Thirdera's specialization in ServiceNow solutions, including advisory, implementation and optimization services, is of significant relevance as businesses increasingly rely on digital workflows to enhance operational efficiency and customer experience.
From a market research perspective, this acquisition could potentially expand Cognizant's market share and enhance its competitive positioning against other major players in the industry. The consolidation of Thirdera's expertise and Cognizant's global reach may lead to synergies that can result in new service offerings and improved service delivery. The market will likely react positively to this acquisition, as it demonstrates Cognizant's commitment to investing in high-growth areas and may lead to an increase in revenue streams from the ServiceNow platform.
Assessing the financial implications of the acquisition, it is important to note that Thirdera's position as an Elite ServiceNow Partner with a strong global presence could potentially translate into immediate revenue growth for Cognizant. The acquisition price, while not disclosed, is a crucial factor in determining the financial impact. Investors should monitor the performance metrics and integration costs in the upcoming quarters to gauge the success of the acquisition.
Furthermore, the historical success of Thirdera's leadership in integrating multiple companies into a cohesive entity suggests a potentially smoother transition process, which can mitigate integration risks and costs. The presence of executives with a proven track record in the industry, like Marc Talluto and Jason Wojahn, is reassuring for stakeholders concerned about the management of post-acquisition operations.
From a legal standpoint, the acquisition of Thirdera by Cognizant will likely undergo regulatory scrutiny to ensure compliance with antitrust laws and regulations. Given the size and influence of both entities in the IT consultancy market, it is important to ensure that the deal does not create anti-competitive effects. The legal teams will be responsible for navigating through the complexities of international business law, as the companies operate on a global scale.
Moreover, the legal implications of transferring Thirdera's intellectual property, client contracts and employee agreements must be handled meticulously to prevent any potential disputes or liabilities that could arise. The harmonization of corporate policies and legal frameworks across different jurisdictions is another critical aspect that needs to be addressed to ensure a seamless integration.
Sunstone Partners created Thirdera in 2021 by merging three companies: Evergreen Systems, Cerna Solutions and Novo/Scale. This initial transaction allowed Thirdera to combine the strengths of these three industry leaders specializing in different aspects of digital transformation and managed services. The company completed three additional follow-on acquisitions after the initial merger, creating the largest independent pure play ServiceNow consultancy with a global presence, with one of the largest aggregations of ServiceNow professional certifications globally.
To lead Thirdera, Sunstone Partners partnered with Marc Talluto, who served as Chairman of the Board of Thirdera prior to the closing and was previously the co-founder and CEO of Fruition Partners, which was acquired by CSC in 2015 (now DXC Technology), and Jason Wojahn, CEO of Thirdera, who was previously Senior Managing Director, Global ServiceNow Platform Lead at Accenture. Prior to Accenture, Jason was the President of the ServiceNow Business Unit at Cloud Sherpas. Together, they expanded the executive team, transformed the go-to-market strategy, elevated service delivery, and successfully integrated six companies in just under three years.
Jason Wojahn, CEO of Thirdera, expressed his excitement about the acquisition, stating, “Reflecting on our path so far, I am deeply appreciative of the extraordinary journey we've shared with Sunstone Partners. Their steadfast support and insights have been fundamental in catalyzing Thirdera's evolution and expansion. This collaboration with Sunstone Partners truly exemplifies the immense potential and value of working together. Now, as we embark on this exciting new phase with Cognizant, we're not just turning a page - we're beginning a whole new chapter in Thirdera's narrative. This union marks a significant milestone, and our team is brimming with enthusiasm for the opportunities and innovations that lie ahead.”
Ankur Rathi, Partner at Sunstone Partners, remarked on the significance of this transaction, saying, “This is an exciting occasion for both Thirdera and Cognizant. We are proud to have been part of Thirdera's remarkable journey from its inception into a market leader. Thirdera's success underscores Sunstone Partners' vision of partnering with management teams to identify, nurture and build exceptional companies. We believe that the partnership with Cognizant will usher in an even more promising future for Thirdera and wish them continued success."
Lazard, Choate Hall & Stewart and RSM acted as advisors to Sunstone Partners and Thirdera in the transaction.
About Sunstone Partners
Sunstone Partners is a growth-oriented private equity firm that makes majority and minority investments in technology-enabled services and software businesses. Founded in 2015, the firm has over
About Thirdera
Thirdera is an Elite-level ServiceNow partner, enabling customers to leverage the power of the ServiceNow platform through workflow-enabled services and solutions. Founded in 2021, Thirdera has quickly become an industry leader, evident by its recognition as a Major Contender in the Everest Group ServiceNow Services PEAK Matrix Assessment 2022 and distinction as the 2022 ServiceNow Global Emerging Industry Solutions Partner of the Year. As the largest global pure-play ServiceNow partner, Thirdera offers high-quality industry expertise and world-class innovation to help businesses accelerate growth and productivity via transformation, digitization, and automation. Visit www.thirdera.com for more information.
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Jonathan Marino
Prosek Partners
jmarino@prosek.com
Source: Sunstone Partners
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