Archive · 30 Dec 2025
Coforge Acquires Encora in $1.8 Billion Deal
Coforge, an Indian IT company, is buying Encora, a US-based company, for $1.89 billion.
This is the biggest deal Coforge has ever made.
Encora adds a lot of money to Coforge's revenue and has better profit margins.
Coforge plans to grow by selling more services together and using technology like AI.
They need to borrow money to pay for the deal, which might make their stock price go down a bit.
Coforge's boss says they are good at buying companies and making them work well together.
Investors are watching to see if this big purchase will be successful.
Coforge is acquiring Encora in a $1.89 billion all-stock deal, valued at $2.35 billion at the enterprise level.
Encora adds a projected FY26 revenue run-rate of about $600 million and an adjusted Ebitda margin of 19% in FY25.
Post-acquisition, the combined entity is expected to operate at an Ebit margin of around 14% after amortisation.
Coforge plans to raise up to $550 million via a bridge loan or a qualified institutional placement to retire Encora’s term loan.
The acquisition significantly reshapes Coforge’s scale, margin profile, and balance sheet, with a focus on hi-tech and healthcare verticals.
- Who
- Coforge (acquirer), Encora (target)
- What
- Acquisition of Encora by Coforge
- When
- Deal announced on December 26, 2023
- Where
- Coforge (India), Encora (US)
- Why
- To expand Coforge's scale, margin profile, and market presence
- Acquirer
- Coforge
- Target
- Encora
- Deal Value
- $1.89 billion (all-stock)
- Enterprise Value
- $2.35 billion
- Expected Revenue Run-Rate (FY26)
- $600 million
- Adjusted Ebitda Margin (FY25)
- 19%
- Expected Combined Ebit Margin
- 14% (post-acquisition)
- Revenue Ambition (FY27)
- $2 billion from AI-led services
- Coforge's Previous Acquisitions
- SLK Global (2021), Cigniti (2024)
- Integration Success
- Smooth integration of past acquisitions with margin gains
Sources
Coforge-Encora deal: Will India’s largest IT acquisition reward investors?
Coforge Shares rise 0.85% as analysts weigh $2.35 Bn Encora acquisition
Coforge’s Encora deal puts execution in focus
IT firms step up shift to AI-led, outcome-based delivery
