Key Highlights of the Deal
Transaction Type: This is an 'all-stock deal.' Coforge will issue shares to Encora’s existing shareholders (including Advent International and Warburg Pincus).
Equity Stake: Following the completion of the merger, Encora’s shareholders will hold approximately a 20-21% stake in the combined entity of Coforge.
Strategic Objective: The move is designed to significantly boost Coforge’s capabilities in Artificial Intelligence (AI), Cloud, and Data Engineering.
Revenue Ambition: With this acquisition, Coforge aims to scale its AI-led services to reach a $2 billion revenue milestone by FY2027.
Global Impact and Expansion
The acquisition provides Coforge with a massive talent pool of over 3,100 specialists and a strong operational footprint across North America and Latin America. This synergy is expected to enhance Coforge’s presence in high-growth sectors such as Healthcare and High-Tech.
Expert Insight: This deal represents the fourth-largest acquisition globally in the engineering services domain, signaling a major shift as Indian IT firms pivot aggressively toward AI-first delivery models.