Coforge to acquire Encora. Reaffirms intent to be the leading AI driven engineering firm for the new era
Bangalore, 15 January, 2026 — Coforge today announced that it has signed definitive agreements to acquire Encora, an AI?native firm born in the Silicon Valley with deep strengths across AI?driven engineering underlaid by Cloud and Data. The transaction is subject to customary closing conditions and regulatory approvals.
Encora
is one of the select tech services firms founded with an AI?native DNA providing
engineering services to Fortune 1000 enterprises and digital-native companies.
The firm 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 ~US$2.5Bn tech services powerhouse
wherein AI-led engineering + Data + Cloud services alone are likely to deliver
US$2Bn revenue in FY’27. AI led product engineering business is likely to be a
US$1.25 Bn+ business, Cloud services a ~US$500Mn business, and Data engineering
a ~US$250Mn+ 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 US$170Mn+ 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 US$10Mn+, 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.
Transaction Details
Encora’s
FY26E revenue is US$600Mn with an Adjusted EBITDA margin of ~19%.
Coforge
will acquire the business from Advent, Warburg Pincus and other minority
shareholders for an Enterprise Value of US$2.35Bn. The transaction will be
funded through a preferential allotment of equity shares representing an equity
value of approximately US$1.89Bn, pursuant to which Encora shareholders will
hold approximately 20% of the expanded share capital of Coforge upon completion
of the transaction.
The combined business is expected to operate at an EBIT margin of 14% and the acquisition is expected to be EPS accretive in FY27.
“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.” said
Sudhir Singh, Chief Executive Officer and Executive Director, Coforge Ltd
“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” said Shweta Jalan, Managing Partner,
Advent
BDA
Partners served as the exclusive investment banker on this transaction. JSA and
Khaitan & Co. represented Coforge and Encora respectively.
About Coforge
Coforge is a global tech
services and solutions provider, that leverages emerging technologies and deep
domain expertise to deliver real-world business impact for its clients.
A focus on select industries, a deep domain understanding of the underlying processes of those industries and partnerships with leading technology platforms, enables Coforge to be a trusted partner of its clients in their transformation initiatives. Coforge leads with its Product Engineering approach and leverages AI, Cloud, Data, Integration and Automation technologies to transform businesses into intelligent, high growth enterprises. Coforge has 33 global delivery centers and is present in 25 countries.
About Advent
International
Advent
is a leading global private equity investor committed to working in partnership
with management teams, entrepreneurs, and founders to help transform
businesses. With 16 offices across five continents, we oversee more than USD
$100 billion in assets under management* and have made nearly 440 investments
across 44 countries.
Since
our founding in 1984, we have developed specialist market expertise across our
five core sectors: business & financial services, consumer, healthcare,
industrial, and technology. This approach is bolstered by our deep sub-sector
knowledge, which informs every aspect of our investment strategy, from sourcing
opportunities to working in partnership with management to execute value
creation plans. We bring hands-on operational expertise to enhance and
accelerate businesses.
To learn more, visit our website or connect with us on LinkedIn.
*Assets under management (AUM) as of June 30, 2025. AUM includes assets attributable to Advent advisory clients as well as employee and third-party co-investment vehicles.
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