The deal, which sources suggest is a multi-million dollar tuck-in acquisition, will strengthen New Jersey-based Cognizant's media and entertainment services business.
Cognizant reports media and entertainment revenue in the 'others' category that represented 11.2 per cent of the total revenues in 2013.
Founded in 1999, itaas is headquartered in Atlanta, US, and employs about 200 people across the US, Canada and India. It enables broadcasters and television providers deliver live streaming and video services on digital platforms.
It has development centres in Noida and Chennai in India.
itaas has worked with ARRIS, Cisco, Comcast, Cox Communications, Charter and Time Warner Cable among others.
"The acquisition will enable Cognizant to capitalise on the growing demand for greater interactivity, higher personalisation and innovative content delivery in the multi-screen and video market," Cognizant said in a statement.
The end-to-end digital video engineering and multiplatform capabilities of itaas will extend Cognizant's existing capabilities serving the communications, media, and hi-tech industries.
Commenting on the deal, Cognizant IT services CEO Rajeev Mehta said the company's strategy is to "acquire for capability and not capacity".
"We continue to focus on organic growth and make strategic tuck-under acquisitions to help expand our geographic footprint. While our definition of tuck-under is up to USD 200 million in target company revenue, the sweet spot is between USD 20 million and USD 80 million," he added.
Cognizant has made acquisitions like Equinox in France and six companies of the C1 Group in Germany, MediCall and PIPC in the past.
The expanded capabilities will also help Cognizant support other industries like banking, retail, and healthcare, which are rolling out advanced customer and business platforms centered on video.
"Cognizant's global reach, experience and entrepreneurial culture will allow us to offer our current and future customers greater scale, a broader range of services, comprehensive solutions, and world-leading consulting and delivery expertise," itaas President and CEO Vibha Rustagi said.