Coforge, a global tech services and solutions provider, has signed definitive agreements to acquire Encora, a global digital engineering and software development firm with deep strengths across AI‑driven engineering underlaid by Cloud and Data.
Coforge will acquire the business from Advent, Warburg Pincus and other minority shareholders for an Enterprise Value of $2.35 billion. The transaction will be funded through a preferential allotment of equity shares representing an equity value of approximately $1.89 billion, pursuant to which Encora shareholders will hold approximately 20% of the expanded share capital of Coforge upon completion of the transaction.
Encora 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 ~$2.5 billion tech services powerhouse wherein AI-led engineering + Data + Cloud services alone are likely to deliver $2 billion revenue in FY’27. An AI-led product engineering business is likely to be a $1.25 billion+ business, Cloud services a ~$500 million business, and Data engineering a ~$250 million+ 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 $170 million+ 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 $10 million+, 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.
Encora’s FY26E revenue is $600 million with an Adjusted EBITDA margin of ~19%.
The combined business is expected to operate at an EBIT margin of 14%, and the acquisition is expected to be EPS accretive in FY27.
Sudhir Singh, Chief Executive Officer and Executive Director, Coforge, said, “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.”
Shweta Jalan, Managing Partner, Advent, said, “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.”
