Coforge to acquire AI-Native Encora in $2.35bn Deal

GREATER NOIDA: Coforge has struck one of the biggest deals in Indian IT services this year, signing definitive agreements to acquire Silicon Valley born Encora for an enterprise value of $2.35 billion. Coforge will acquire the business from Advent, Warburg Pincus and other minority shareholders, subject to customary regulatory approvals. The move catapults Coforge into the big league of AI led engineering firms with global scale.

Encora is no ordinary tech services company. Built with AI at its core, the firm operates at the crossroads of artificial intelligence, cloud and data, helping Fortune 1000 enterprises and digital natives modernise, automate and build smarter products. Its capabilities span agent native product engineering, intelligent process design, core modernisation, data readiness, AIOps and AI foundations. Encora is also the creator of AIVA, one of the industry’s early composable agentic AI platforms, and works closely with hyperscalers including AWS, Microsoft, Google and Snowflake.

Once combined, Coforge and Encora will form a technology services powerhouse with revenues of around $2.5 billion. AI led engineering, cloud and data services alone are expected to generate close to $2 billion by FY27. Product engineering is projected to cross $1.25 billion, cloud services about $500 million, and data engineering over $250 million.

The acquisition also reshapes Coforge’s sectoral and geographic mix. Its Hi Tech and Healthcare verticals are expected to scale rapidly, each reaching an annualised revenue run rate of over $170 million. The deal significantly strengthens Coforge’s near shore delivery presence in Latin America, backed by a specialised talent base of more than 3,100 AI and engineering experts, while sharply expanding its footprint across the western and mid western United States.

Encora is forecast to deliver FY26 revenues of $600 million with an adjusted Ebitda margin of around 19 percent. The transaction will be funded through a preferential equity allotment valued at approximately $1.89 billion, resulting in Encora shareholders holding about 20 percent of Coforge’s expanded share capital. The combined entity is expected to operate at a 14 percent Ebit margin, with the acquisition turning earnings accretive in FY27.

Calling the deal transformational, Coforge chief executive officer Sudhir Singh said the acquisition establishes a strong AI led engineering core underpinned by data and cloud capabilities, enabling enterprises to turn the promise of AI into measurable outcomes. Advent managing partner Shweta Jalan said Encora has found the right long term partner in Coforge as it enters its next phase of growth.

BDA Partners acted as the exclusive investment banker on the transaction, while JSA and Khaitan and Co represented Coforge and Encora respectively.