Coforge announced it has signed definitive agreements to acquire Encora, an AI-native engineering services firm founded in Silicon Valley, in a transaction that the companies said is designed to accelerate Coforge’s ambition to become a leading AI-driven engineering provider.
Encora provides AI-driven engineering services to Fortune 1000 enterprises and digital-native companies, with capabilities spanning intelligent process design, agent-native product engineering, core modernization, AI foundation services, data readiness, and AIOps. Coforge said Encora operates at the intersection of AI, cloud, and data, and has built a composable agentic AI platform branded AIVA, alongside partnerships with major cloud and data ecosystem providers including AWS, Microsoft, Google, and Snowflake.
Coforge said the combination would create a technology services business with approximately $2.5 billion in scale, and projected that AI-led engineering, cloud, and data services together could contribute about $2 billion of revenue in FY27. The company also outlined expected segment scale, projecting AI-led product engineering at more than $1.25 billion, cloud services at roughly $500 million, and data engineering at more than $250 million.
The acquisition is also expected to reshape Coforge’s vertical and geographic mix. Coforge said its Hi-Tech and Healthcare industry verticals are expected to reach material scale immediately after closing, each operating at an annualized run rate of more than $170 million in revenue. Coforge also said the deal would expand its near-shore delivery footprint in Latin America and add an engineering and AI talent base of more than 3,100 subject-matter experts focused on U.S. clients, while broadening its West and Mid-West U.S. customer presence. The combined company is expected to have 45 client relationships generating $10 million or more annually, according to Coforge.
Under the terms, Coforge will acquire Encora from Advent, Warburg Pincus, and other minority shareholders for an enterprise value of $2.35 billion. Coforge said Encora’s FY26E revenue is expected to be about $600 million, with an adjusted EBITDA margin of roughly 19%. The transaction is expected to be funded through a preferential allotment of equity shares with an equity value of approximately $1.89 billion, and Encora shareholders are expected to hold about 20% of Coforge’s expanded share capital upon completion.
Coforge said the combined business is expected to operate at an EBIT margin of 14% and that the acquisition is expected to be EPS accretive in FY27. BDA Partners served as exclusive investment banker on the transaction, while JSA and Khaitan & Co. advised Coforge and Encora, respectively.
KEY QUOTES
“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 $2 billion 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.”
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.”
Shweta Jalan, Managing Partner, Advent
