Coforge has announced a definitive agreement to acquire Encora in an all-stock transaction valued at $2.35 billion, describing the acquisition as a “defining moment” for the company as it builds capabilities in AI-led engineering, data and cloud services.
On a conference call with analysts, Coforge chief executive officer Sudhir Singh said the transaction would establish a scaled, AI-native engineering capability for the firm at a time when enterprise technology is increasingly being shaped by artificial intelligence, cloud, and data.
Singh said Coforge’s current leadership team, which came together about eight and a half years ago, has delivered one of the highest growth rates among mid- and large-cap technology services firms, driven by execution intensity, hyper-specialisation in select industries and deep capabilities in emerging technologies.
Over this period, the company’s revenue run rate has increased nearly fivefold, while its market capitalisation has grown almost twentyfold, he said.
The Encora acquisition, Singh said, is intended to build on that track record. He described the firm as becoming an approximately $2.5-billion technology services company, with a $2-billion enterprise core of AI-led engineering, data and cloud services.
Encora, founded in Silicon Valley, provides AI-native software engineering services to digital-native companies and Fortune 1000 enterprises. Its offerings span intelligent process design, agent-native product engineering, core modernisation, AI foundations, data readiness, and AI operations.
Singh highlighted Encora’s composable AI platform, AIVA, which he said enables agentic orchestration and allows organisations to compose intelligent workflows across engineering and business functions.
He outlined five attributes that Coforge believes differentiate Encora: an AI-native internal agentic platform, long-tenured relationships within large enterprises, a human-plus-agent delivery model, a talent composition aligned with AI-native engineering rather than labour arbitrage, and a services-plus-software platform model.
According to Singh, the acquisition is expected to create material scale across service lines by fiscal year 2027, with AI-led product engineering projected to become a $1.25-billion business, cloud services a $500-million business, and data engineering contributing about $250 million in revenue.
He added that the deal would immediately expand Coforge’s presence in high-tech and healthcare verticals, with each expected to reach a $170-million run rate following the acquisition.
Singh said Encora brings AI-led healthcare solutions, including biomedical research assistants, AI-enabled patient monitoring, multi-omics data ingestion, and AI foundations for clinical trials.
The acquisition will also expand Coforge’s near-shore delivery footprint in Latin America, where Encora has more than 3,100 delivery professionals, and significantly increase the company’s presence in the western and midwestern United States.
Coforge’s North America business is expected to increase by about 50% to $1.4 billion after the transaction, Singh said.
The firm will have 45 client relationships, each generating more than $10 million in annual revenue.
Encora contributes 11 such relationships, with its top 10 client relationships averaging more than a decade in tenure.
Singh cited Coforge’s track record of expanding acquired client relationships, including its earlier Cigniti acquisition.
Providing transaction details, chief financial officer Saurabh Goyal said Coforge will acquire 100% of Encora from Advent International, Warburg Pincus, and other minority shareholders.
The transaction has an enterprise value of $2.35 billion, with equity consideration of $1.89 billion to be paid through a preferential allotment of Coforge shares. The company’s board has approved raising the remaining amount through a qualified institutional placement.
Encora is estimated to generate revenues of about $600 million in FY26, with an adjusted EBITDA margin of around 19%, Goyal said.
In a separate statement, Shweta Jalan, managing partner at Advent International, said the investment reflects Advent’s approach of backing businesses and management teams to build industry-leading companies.