Coforge to acquire Encora in $2.04 bn AI-driven expansion

Coforge Limited's board of directors approved the acquisition of Encora US Holdco, Inc. and Encora Holdings Ltd. for a total consideration of INR 1,70,32,60,16,842. The transaction involves Coforge issuing 9,37,96,508 equity shares at INR 1,815.91 per share to Encora's investors, Advent International and Warburg Pincus. These investors will collectively hold approximately 21.25% of Coforge's post-issue equity share capital.

The acquisition is expected to establish Coforge as a leader in AI-led engineering services, projecting a combined entity as a USD 2.5 billion tech services powerhouse by FY27. This move is anticipated to scale Coforge's HiTech and Healthcare verticals to an annualized USD 170 million+ run-rate business each, and expand its US West and Mid-West client footprint. Regulatory approvals for the acquisition are expected within four to six months.

To facilitate the acquisition and future growth, Coforge also proposes to increase its Authorised Share Capital from INR 77,00,00,000 to INR 1,02,00,00,000 and enhance its investment limits under Section 186 of the Companies Act, 2013, to USD 2.447 billion. Shareholder approval for these proposals will be sought through a postal ballot, with e-voting commencing on December 27, 2025, and results declared by January 27, 2026.