Coforge to Acquire Encora for $2.35 Billion to Scale AI-Led Engineering Powerhouse

Coforge Ltd. has signed a definitive agreement to acquire Encora, an AI-native digital engineering firm, for an enterprise value of $2.35 billion. This transaction is intended to establish the company as a $2.5 billion revenue powerhouse by fiscal year 2027. The deal focuses on building a formidable competitive advantage in AI-led engineering, cloud, and data services for the global market.

The acquisition will be funded through a preferential allotment of equity shares representing a value of roughly $1.89 billion. Following the close, Encora shareholders like Advent International and Warburg Pincus will retain a 20 percent stake in the combined entity. This investment structure illustrates strong confidence in the long-term growth and margin potential of the new organization.

Encora brings a specialized talent base of 3,100 experts and a proprietary agentic AI platform called AIVA. This technical foundation allows Coforge to help enterprises create data cores and cloud foundations specifically built for artificial intelligence. By FY27, the firm expects its AI, cloud, and data engineering segments to generate $2 billion in annual revenue.

A major advantage of the deal is the addition of scaled near-shore delivery capabilities in Latin America. This geographical expansion aligns with the requirements of U.S. clients and increases the firm's footprint in the West and Mid-West regions. Industry verticals such as Healthcare and Hi-Tech are also expected to reach a revenue run rate of $170 million immediately after the merger.

Sudhir Singh, the CEO of Coforge, noted that this is a defining moment for the firm’s trajectory. He stated that the augmented enterprise core will accelerate growth and help deliver meaningful business impact through emerging technologies. More details regarding the strategy and transaction structure are available at the Coforge newsroom. The transaction remains subject to customary closing conditions and necessary regulatory approvals from various jurisdictions. This acquisition shows Coforge's aggressive pursuit of inorganic growth to lead the tech services industry. The combined business is projected to maintain an EBIT margin of 14 percent while being accretive to earnings per share by FY27.