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3d ago

Coforge to Acquire Encora for $2.35 Billion in AI-Led U.S. Expansion

Funding centers on a $1.89 billion preferential share issue to Encora’s owners, with closing targeted in four to six months pending approvals.

Coforge to acquire Encora for $2bn, eyes $2.5bn revenue club; stock in focus on Dec 29
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Overview

  • Coforge signed a definitive agreement to buy 100% of Encora from Advent International, Warburg Pincus and other shareholders at a $2.35 billion enterprise value.
  • Encora’s shareholders will receive preferential equity worth about $1.89 billion and are set to hold roughly 20% of the enlarged Coforge.
  • The remaining outlay will be met via a bridge loan or a potential qualified institutional placement of up to $550 million to retire Encora’s debt.
  • Coforge expects the combination to approach $2.5 billion in revenue by FY27, target an EBIT margin near 14% after amortization and be accretive to EPS in FY27.
  • The deal is projected to lift North America revenue by about 50% to more than $1.4 billion and add over 3,100 nearshore professionals across Latin America along with 11 $10 million-plus client relationships.