Coforge To Acquire Encora In US$2.35 Billion Deal

Coforge has announced that it has signed definitive agreements to acquire Encora, an AI‑native firm born in the Silicon Valley with deep strengths across AI‑driven engineering underlaid by Cloud and Data. The transaction is subject to customary closing conditions and regulatory approvals.

Encora is one of the select tech services firms founded with an AI‑native DNA providing engineering services to Fortune 1000 enterprises and digital-native companies. The firm operates at the convergence of AI, Cloud and Data, with capabilities spanning Intelligent Process Design, Agent‑Native Product Engineering, Core Modernization, AI Foundation, Data Readiness, and AIOps. Encora has built one of the industry’s first composable agentic AI platforms — AIVATM, and has deep partnerships with AWS, Microsoft, Google and Snowflake. 

Coforge’ s acquisition of Encora will create a ~US$2.5Bn tech services powerhouse wherein AI-led engineering + Data + Cloud services alone are likely to deliver US$2Bn revenue in FY’27. AI led product engineering business is likely to be a US$1.25 Bn+ business, Cloud services a ~US$500Mn business, and Data engineering a ~US$250Mn+ business for the firm.

Furthermore, Hi-Tech and Healthcare industry verticals of Coforge are expected to reach material scale immediately post-acquisition. They will both individually operate at an annualized US$170Mn+ revenue run rate. The acquisition will reposition Coforge as a player with scaled near-shore delivery capability in LATAM with an exceptional engineering and AI Talent base of 3100+ SMEs servicing US Clients. It will significantly expand the West and Mid-West US client footprint of Coforge, which pre-acquisition contributed only 25% to its US Geo revenues. The combined firm will have forty-five US$10Mn+, highly scalable relationships. Given its exceptional track record of making acquisitions successful, Coforge believes that it will materially and expeditiously scale up these client relationships.

Transaction Details

Encora’s FY26E revenue is US$600Mn with an Adjusted EBITDA margin of ~19%.

Coforge will acquire the business from Advent, Warburg Pincus and other minority shareholders for an Enterprise Value of US$2.35Bn. The transaction will be funded through a preferential allotment of equity shares representing an equity value of approximately US$1.89Bn, pursuant to which Encora shareholders will hold approximately 20% of the expanded share capital of Coforge upon completion of the transaction.

The combined business is expected to operate at an EBIT margin of 14% and the acquisition is expected to be EPS accretive in FY27. 

“The Encora acquisition is a defining moment for our organization. It establishes a scaled AI-led engineering capability moat for the firm underpinned by capabilities to help create enterprise data cores and cloud foundations purpose built for AI. The new US$2.5Bn firm, with a US$2Bn enterprise core of AI-led Engineering, Data and Cloud services, will set the benchmark on making the promise of AI real for enterprises. Over the last eight years Coforge has delivered industry leading growth on the back of its execution excellence, hyperspecialized industry expertise and a perfect track record of making every acquisition very successful. With this augmented enterprise AI led engineering core we believe that our growth will get further accelerated and move to an even higher orbit.”  said Sudhir Singh, Chief Executive Officer and Executive Director, Coforge Ltd

“Coforge’s investment in Encora is a testament to Advent’s philosophy of investing in promising businesses, working with talented management teams and building these businesses into industry leaders. We are delighted that Encora has found the right home and is joining forces with Coforge; we are looking forward to continuing our partnership with Sudhir and the management team to build one of the most admired AI-led engineering companies globally” said Shweta Jalan, Managing Partner, Advent

BDA Partners served as the exclusive investment banker on this transaction. JSA and Khaitan & Co. represented Coforge and Encora respectively.