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.
Encora’s FY26E revenue is $600 million with an Adjusted EBITDA margin of approximately 19%.
Coforge will acquire the business from Advent, Warburg Pincus and other minority shareholders for an enterprise value of $2.35 billion.
The transaction will be funded through a preferential allotment of equity shares representing an equity value of approximately $1.89 billion, pursuant to which Encora shareholders will hold approximately 20% of the expanded share capital of Coforge upon completion of the transaction.
Coforge’s acquisition of Encora is set to create a technology services powerhouse with an estimated total revenue of $2.5 billion.
Within this structure, the combination of AI-led engineering, data, and cloud services is projected to deliver $2 billion in revenue by fiscal year 2027. The AI-led product engineering segment alone is expected to grow into a business worth over $1.25 billion.
Additionally, cloud services are estimated to reach approximately $500 million, while data engineering is forecasted to contribute more than $250 million to the firm's total revenue.
The combined business is expected to operate at an EBIT margin of 14% and the acquisition is expected to be EPS accretive in FY27.
Sudhir Singh, chief executive officer and executive director, Coforge, said: "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.”
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.
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