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Coforge to Acquire Encora in $2.35 Billion Deal to Accelerate AI-Led Engineering

Board approval triggers a four-to-six‑month closing process pending shareholder and regulatory clearances.

Overview

  • Coforge will fund $1.89 billion of the equity value by issuing preference shares that give Encora shareholders a 20% stake in the company.
  • The remaining consideration will be covered via a bridge loan or a possible qualified institutional placement, with the board authorizing up to $550 million of fundraising.
  • Management expects the North America business to expand by about 50%, lifting regional revenue to more than $1.4 billion after the transaction closes.
  • The combined firm targets roughly $2.5 billion in scale with broader capabilities across AI-led engineering, cloud, and data services.
  • Encora brings 3,100-plus professionals in Latin America for nearshore delivery and is expected to lift HiTech and Healthcare to about a $170 million run-rate each.