Coforge has announced a definitive agreement to acquire Encora, a technology services firm, for an enterprise value of $2.35 billion. The acquisition will be financed through a mix of equity and debt, with Encora’s shareholders expected to hold approximately 20% of Coforge. This strategic move aims to establish Coforge as a leader in AI-led engineering, data, and cloud services, projecting a combined revenue of $2.5 billion.
Strategic Acquisition of Encora
Coforge is set to acquire Encora in a deal valued at $2.35 billion. This acquisition, announced on December 26, 2025, marks a significant step for Coforge in strengthening its capabilities in AI-led engineering, data, and cloud services. It is projected that the combined entity will reach a $2.5 billion tech services powerhouse.
Deal Rationale and Financial Details
The transaction will be financed through equity of $1.89 billion and balance through bridge loan or QIP. Encora’s financials show steady growth. The acquisition is not expected to dilute earnings per share. The sellers, including Advent International and Warburg Pincus, are rolling over into Coforge and not taking any consideration as cash, reflecting confidence in the prospects of the expanded firm. The consideration has been agreed at a share price of Rs 1815 per share which is at a premium of 8.5 % of today’s close.
Expected Synergies and Future Growth
Coforge anticipates significant synergies from this acquisition, particularly in AI-led engineering, data, and cloud services. Nearly $2 Billion in revenue is expected from Al-led engineering, cloud, and data services by FY’27. The acquisition is expected to scale Coforge’s HiTech and Healthcare verticals, increase nearshore delivery capabilities, and expand its client footprint in the US West and Midwest.
Key Terms and Approvals
The acquisition is subject to shareholder and regulatory approvals. Shareholder approval will be secured within 30 days of signing, with regulatory approvals expected within 4 to 6 months. Coforge will assume debt in overseas geos to retire Encora’s existing term loan on the closing date. The deal is expected to be completed within 4 to 6 months.
Changes to Share Capital
The board also approved increasing the authorized share capital from INR 77,00,00,000 to INR 1,02,00,00,000 and the issuance of equity shares on a preferential basis pursuant to a share swap arrangement.
Raising Capital
Coforge will raise capital of an aggregate amount not exceeding USD 550 Mn through qualified institutional placement (“QIP”).
Source: BSE
