Coforge has successfully completed the acquisition of Encora, initially announced in December 2026. The company has secured a USD 550 million three-year loan at a fixed interest rate of 4.6%, cancelling previous plans for a Qualified Institutional Placement (QIP) to fund the purchase. The first repayment is due in six months.
The financial consolidation of Encora into Coforge is set to commence on May 1, 2026, with the company’s FY’27 results expected to reflect eleven months of Encora’s operations. Coforge anticipates significant positive impacts on growth and margins for FY’27, with integration activities progressing ahead of schedule. The firm expects cost synergies in general and administrative expenses to range between 20% and 25%.
Key leadership roles within the newly integrated organisation have been filled, with all desired Encora leaders accepting positions. Notably, Vijay Verma will assume the role of Senior Management Personnel (SMP) within the company.
The acquisition is strategically aligned with Coforge’s goals, as AI-led engineering, data, and cloud services are projected to generate US$2 billion in revenue by FY’27. The acquisition is expected to bolster Coforge’s presence in the Hi-Tech and Healthcare sectors and expand its nearshore delivery capabilities in Latin America. Additionally, the acquisition will enhance Coforge’s client footprint in the Western and Mid-Western United States, with the combined firm boasting forty-five US$10 million-plus scalable relationships.
Coforge views the acquisition as a pivotal development, positioning the company at the forefront of the emerging enterprise tech landscape, where AI, cloud, and data drive enterprise reinvention. The newly formed US$2.5 billion entity, with a US$2 billion core in AI-led engineering, data, and cloud services, aims to set new benchmarks for AI implementation in enterprises.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).