Coforge to Acquire Encora in $2.35 Bn All-Stock Deal, Bets Big on AI-Led Engineering

Coforge has entered into a definitive agreement to acquire Encora in an all-stock transaction valued at $2.35 billion, marking what the company called a “defining moment” in its push to build scale in AI-led engineering, data and cloud services.

Speaking on a conference call with analysts, Coforge chief executive officer Sudhir Singh said the deal positions the company to create a scaled, AI-native engineering platform as enterprise technology becomes increasingly shaped by artificial intelligence, cloud and data.

"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$2.5 Bn firm, with a US$2 Bn enterprise core of AI-led Engineering, Data and Cloud services, will set the benchmark on making the promise of AI real for enterprises,”  Sudhir Singh, Chief Executive Officer and Executive Director, Coforge Ltd said in a press release.

Singh added the current leadership team, formed about eight and a half years ago, has delivered one of the highest growth rates among mid- and large-cap IT services firms, driven by execution intensity, hyper-specialisation and emerging technology capabilities.

Over that period, Coforge’s revenue run rate has grown nearly fivefold and its market capitalisation almost twentyfold, Singh said. He added that the Encora acquisition builds on this trajectory, creating an approximately $2.5-billion technology services firm anchored by a $2-billion core focused on AI-led engineering, data and cloud.

Founded in Silicon Valley, Encora provides AI-native software engineering services to digital-native companies and Fortune 1000 enterprises. Singh highlighted Encora’s composable AI platform, AIVA, which enables agentic orchestration across engineering and business workflows.

Chief financial officer Saurabh Goyal said Coforge will acquire 100% of Encora from Advent International, Warburg Pincus and other shareholders, with equity consideration of $1.89 billion. Encora is expected to generate about $600 million in FY26 revenue with an adjusted EBITDA margin of around 19%.

“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, said.