Coforge's $2.35B Acquisition of Encora's Tech Services

IT services provider Coforge Limited has announced its intention to acquire rival firm Encora Digital LLC for $2.35 billion.

Coforge, listed on two Indian stock exchanges, plans to finance the acquisition through a share issuance. The company will also secure a bridge loan of up to $550 million to refinance existing debt on Encora’s balance sheet. The acquisition is being made from a consortium of investors, including private equity firms Advent International and Warburg Pincus, along with other stakeholders.

Basing its operations in New Jersey, Encora specializes in consulting services that enable enterprises to modernize their technology infrastructure. A key focus area for the company is artificial intelligence use cases. It assists clients in fine-tuning large language models using proprietary data sets, converting these models into autonomous agents, and integrating them with enterprise applications.

Encora also competes across additional segments of the tech services market. The company offers solutions for resolving data quality and compliance issues within business datasets. Furthermore, it maintains a dedicated team focused on user interface and experience design.

The firm packages its professional services alongside a software platform called AIVA. According to Encora, AIVA streamlines many of the manual processes involved in managing AI agents. The platform also includes a pre-built library of ready-to-deploy agents capable of automating tasks such as code debugging.

Coforge operates its own AI solution named Quasar. This platform offers more than 100 application programming interfaces (APIs), allowing developers to combine functionalities and create customized AI tools. Quasar also features governance mechanisms designed to ensure reliable performance of AI-driven workloads.

This platform enhances Coforge’s core IT services, which constitute the majority of its revenue. The company supports clients in developing AI-powered applications, rolling out productivity suites like Microsoft 365, and executing broader digital transformation initiatives. Beyond IT, Coforge provides support in non-technical domains, including mortgage processing and patient appointment scheduling.

"The acquisition of Encora marks a pivotal milestone in our growth journey," said Sudhir Singh, Chief Executive Officer of Coforge. "It establishes a strong AI-first engineering capability, enabling us to build enterprise-grade data cores and cloud infrastructures purpose-built for artificial intelligence."

Coforge anticipates that the deal will boost its annual revenue in North America by 50%, reaching approximately $1.4 billion. Additionally, the company will gain access to 11 major clients who each spend over $10 million annually on Encora’s services. The combined entity is expected to operate at an EBIT margin of 19%.

The transaction is anticipated to close within six months following receipt of regulatory approvals.