Coforge has signed definitive agreements to acquire Encora, an AI-native engineering firm, for an enterprise value of US$2.35 Billion. The acquisition aims to position Coforge as a leading AI-driven engineering firm, expanding its capabilities in AI, Cloud, and Data. Encora’s shareholders will hold approximately 20% of Coforge upon completion of the transaction. The deal is expected to be EPS accretive in FY27.
Strategic Acquisition of Encora
Coforge is set to acquire Encora, an AI-native firm specializing in engineering. This acquisition is valued at US$2.35Bn and aims to solidify Coforge’s position as a leader in AI-driven engineering. The transaction remains subject to customary closing conditions and regulatory approvals.
Deal Rationale and Synergies
The acquisition is expected to create a tech services powerhouse with approximately US$2.5Bn in revenue, where AI-led engineering, Data, and Cloud services are projected to generate US$2Bn in revenue by FY’27. Encora’s expertise is expected to enhance Coforge’s capabilities in Intelligent Process Design, Agent-Native Product Engineering, and other key areas. Encora has built one of the industry’s first composable agentic AI platforms — AIVA™.
Financial Details and Expectations
Encora’s FY26E revenue is projected to be US$600Mn with an Adjusted EBITDA margin of approximately 19%. The acquisition will be funded through a preferential allotment of equity shares, giving Encora shareholders approximately 20% ownership of the expanded share capital of Coforge upon closing. The combined business is expected to operate at a 14% EBIT margin, and the acquisition is anticipated to be EPS accretive in FY27.
Expanded Market Presence
This acquisition will enable Coforge to scale its near-shore delivery capabilities in LATAM, leveraging Encora’s engineering and AI talent base. It will also significantly expand Coforge’s client footprint in the West and Mid-West US. The combined firm will have forty-five US$10Mn+ highly scalable relationships.
Source: BSE
