Princeton, NJ/Greater Noida, December 26, 2025: Indian IT services company Coforge has agreed to acquire U.S.-based engineering and AI services firm Encora from private equity backers Advent International and Warburg Pincus in a deal valuing the target at $2.35 billion on an enterprise value basis. The company said the acquisition will be financed through a preferential issue of equity shares worth about $1.89 billion. Encora shareholders will receive a 20% stake in the combined firm.
Encora is one of the few technology service firms with AI at its core, providing advanced engineering services to Fortune 1000 companies and digital innovators. Its offerings include Intelligent Process Design, Agent-Native Product Engineering, Core Modernization, AI Foundations, Data Readiness, and AIOps. Encora also developed one of the first composable agentic AI platforms, AIVATM, and has partnerships with major tech companies like AWS, Microsoft, Google, and Snowflake.
Coforge’s acquisition of Encora will create a ~ US$2.5 billion tech services powerhouse, where AI-led engineering, Data, and Cloud services alone are likely to deliver US$2 billion in revenue in FY’27. AI led product engineering business is likely to be a US$1.25 Bn+ business, Cloud services a ~US$500 million business, and Data engineering a ~US$250Mn+ business for the firm.
The deal also enhances Coforge’s nearshore delivery footprint, notably in Latin America, where Encora has a significant presence with more than 3,100 specialists serving U.S. clients. From a market positioning perspective, this acquisition represents a step change in scale for Coforge
The Hi-Tech and Healthcare sectors at Coforge are set to grow quickly after the acquisition, each reaching over US$170 million in annual revenue.
The deal will increase Coforge’s presence in the Western and Midwestern US, which previously made up only 25% of its US revenue, and will expand its portfolio to forty-five clients with over US$10 million in scalable relationships. Coforge is confident it can build on its strong integration record to grow these client relationships further.
Encora is expected to generate US$600 million in revenue in FY26E, with an Adjusted EBITDA margin of about 19%. The combined company is expected to have a 14% EBIT margin, and the deal should increase earnings per share by FY27.
Regulatory approvals, particularly in the U.S. and India, alongside shareholder consent processes, must also be finalised before the transaction can close, which could introduce timing uncertainty.
“The acquisition of Encora represents a defining chapter in our journey, cementing a robust AI-led engineering advantage for Coforge. Our strengthened capabilities will empower clients to build enterprise data cores and cloud infrastructures purpose-built for AI. The newly formed US$2.5 billion enterprise, anchored by US$2 billion in AI-led engineering, data, and cloud services, will set a new industry benchmark for making AI’s promise a reality for global enterprises. Over the past eight years, Coforge has delivered industry-leading growth rooted in operational excellence, hyperspecialized expertise, and an unblemished record of acquisition success. With our expanded AI engineering core, we are poised for accelerated growth and a new era of value creation,” said Sudhir Singh, Chief Executive Officer and Executive Director, Coforge Ltd.
Shweta Jalan, Managing Partner at Advent, added: “Coforge’s investment in Encora is a testament to Advent’s philosophy of nurturing high-potential businesses and collaborating with exceptional management teams to build industry leaders. We are delighted that Encora has found its ideal partner in Coforge and look forward to supporting the creation of a truly world-class AI-driven engineering company.”
BDA Partners acted as the exclusive investment banker on the transaction. Legal counsel was provided by JSA for Coforge and Khaitan & Co. for Encora.
Also Read: Technology trends redefining how enterprises will operate in 2026
