Cognizant Technologies (NASDAQ:CTSH) announced on Monday that it has reached an agreement to acquire digital engineering firm Belcan for approximately $1.3 billion in a cash and stock transaction.

This acquisition aims to strengthen Cognizant’s position in the aerospace, defense, space, and automotive sectors. Belcan, headquartered in Cincinnati and owned by private equity firm AE Industrial Partners since 2015, employs 10,000 people across 60 global locations. Its clients include Boeing (NYSE:BA), General Motors (NYSE:GM), Rolls-Royce, NASA, and the U.S. Navy.

Cognizant CEO Ravi Kumar expressed his excitement about the acquisition, stating, “I’m thrilled that Belcan operates in a sector growing faster than IT services, providing us with an opportunity to capitalize on that growth.”

Kumar further explained, “The capabilities that Belcan possesses in engineering and aerospace can be shared with Cognizant’s strengths in industrial manufacturing and automotive. This synergy leverages the distribution networks and services of both companies.”

Belcan will continue to be led by its CEO Lance Kwasniewski and will operate as a subsidiary of Cognizant after the acquisition.

With a market value of $33 billion, Cognizant is focused on enhancing its offerings in specialized areas as it anticipates a slowdown in client spending. The company has revised its annual revenue forecast to a range of $18.9 billion to $19.7 billion, down from the previous forecast of $19.0 billion to $19.8 billion.