Coforge today announced that it has signed definitive agreements to acquire Encora, a Silicon Valley–born, AI-native engineering services company with deep expertise across artificial intelligence, cloud, and data platforms. The transaction is subject to customary regulatory approvals and closing conditions.
Encora is among a select group of technology services firms built with an AI-native DNA, delivering advanced engineering solutions to Fortune 1000 enterprises as well as digital-native companies. Its offerings sit at the convergence of AI, cloud, and data, spanning intelligent process design, agent-native product engineering, core modernization, AI foundations, data readiness, and AIOps. The company has also developed one of the industry’s early composable agentic AI platforms, AIVA™, and maintains strategic partnerships with hyperscalers and data leaders including AWS, Microsoft, Google, and Snowflake.
With this acquisition, Coforge expects to create a combined tech services platform with revenues of approximately $2.5 billion. AI-led engineering, cloud, and data services together are projected to contribute nearly $2 billion in revenue by FY27. Within this, AI-driven product engineering alone is expected to scale to over $1.25 billion, cloud services to around $500 million, and data engineering to more than $250 million, significantly strengthening Coforge’s next-generation digital capabilities.
The deal is also set to immediately scale Coforge’s presence in the hi-tech and healthcare verticals, with both segments expected to operate at an annualised revenue run rate of over $170 million each post-acquisition. In addition, the transaction materially enhances Coforge’s near-shore delivery capabilities in Latin America, supported by an engineering and AI talent pool of over 3,100 subject-matter experts focused on servicing US clients.
From a geographic standpoint, the acquisition expands Coforge’s footprint in the West and Mid-West regions of the United States, which prior to the transaction accounted for only about a quarter of its US revenues. The combined entity will have 45 client relationships generating more than $10 million each, providing a strong base for scalable growth. Coforge believes its track record of successful integrations will help accelerate the expansion of these relationships.
On the financial side, Encora is expected to report FY26 revenues of around $600 million with an adjusted EBITDA margin of approximately 19%. Coforge will acquire Encora from private equity sponsors including Advent and Warburg Pincus, along with other minority shareholders, for an enterprise value of $2.35 billion. The transaction will be funded through a preferential equity allotment valued at about $1.89 billion, following which Encora shareholders will own roughly 20% of the expanded share capital of Coforge.
Post-acquisition, the combined business is expected to operate at an EBIT margin of around 14%, with the deal projected to be earnings-per-share accretive from FY27. The acquisition marks a significant strategic step for Coforge as it positions itself as a scaled global player in AI-led engineering, cloud, and data services.
