Coforge has announced a major strategic acquisition, agreeing to buy Encora, a US-based AI-driven digital engineering firm, in a deal valued at $2.35 billion. The acquisition, from private equity firms Advent International and Warburg Pincus, is expected to significantly boost Coforge’s AI-led services portfolio and North American presence.
Coforge said the deal will increase its revenues in North America by nearly 50 percent, taking the region’s total revenue to over $1.4 billion. Encora is projected to generate $600 million in revenue in FY26, up from $516 million in FY25, with an adjusted EBITDA margin of 19 percent, strengthening Coforge’s overall financial profile.
Following board approval on December 26, Coforge stated that the combined entity will emerge as a $2.5 billion global technology services company, with strong capabilities across AI-led engineering, cloud services, data analytics, and digital transformation. The acquisition aligns with Coforge’s strategy to scale enterprise-grade AI solutions for global clients.
The equity value of $1.89 billion will be funded through the issuance of preference shares, giving Encora’s shareholders a 20 percent stake in Coforge. The remaining consideration will be met via a bridge loan or a Qualified Institutional Placement (QIP) to repay Encora’s existing term loan. Coforge has received board approval to raise up to $550 million, although it noted that a QIP may not be required if alternate financing options are finalised.
The deal is expected to immediately strengthen Coforge’s HiTech and Healthcare verticals, with each projected to reach a $170 million run-rate. Encora brings deep expertise in AI-led solutions for pharma, medtech, and healthtech, along with 11 large client relationships generating over $10 million annually, increasing Coforge’s total such accounts to 45.
With this acquisition, Coforge aims to accelerate growth in AI services, digital engineering, and US enterprise markets, positioning itself as a stronger competitor in the global IT services and technology consulting landscape.
