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Informist, Friday, Dec. 26, 2025

 

--Coforge board OKs raising up to $550 mln via QIP or other mediums 

--Coforge to buy US AI solutions co Encora for $2.35 bln enterprise value 

--Coforge to buy Encora via shr swap with Encora Holdco UK, AI Altius Parent 

--Coforge: Encora acquisition seen scaling up co's hi-tech, healthcare ops 

--Coforge: Encora acquisition to expand west, mid-west US client footprint 

 

NEW DELHI – Coforge Ltd. Friday said it will acquire US-based artificial intelligence software engineering firm Encora from Advent International, Warburg Pincus, and other minority shareholders for an equity value of $1.89 billion through a share-swap agreement. This all-stock deal is being done at an enterprise value of $2.35 billion and will create a technology services firm with revenue of $2.5 billion, Coforge said in an exchange filing. 

 

As consideration, Coforge will issue equity shares worth $1.89 billion to UK-based Encora Holdco Ltd. and AI Altius Parent Ltd. Coforge will issue up to 93.80 million equity shares with a face value of INR 2 for INR 1,815.91 per share, which is at a premium of 8.5% of Coforge's Friday's closing share price. This implies a non-cash consideration of INR 170.33 billion.

 

Coforge's board approved an increase in the company's authorised share capital to INR 1.02 billion through the issuance of 125 million new shares. Encora's shareholders will hold approximately 20% of Coforge's expanded share capital post-transaction.

 

Coforge's board also approved raising up to $550 million through a qualified institutional placement or a bridge loan to retire the term loan held by Encora. The company said that raising money through a QIP is just one of the funding options it is considering, which, if and when it fructifies, will happen around the closing of the deal. The deal is expected to be completed in 4-6 months.

 

The deal is subject to approval from shareholders and regulators, including the Reserve Bank of India and authorities in the US. Coforge expects the combined business to operate at an earnings before interest margin of 14%. "The new US$2.5Bn ($2.5 billion) firm, with a US$2Bn ($2 billion) enterprise core of AI-led Engineering, Data and Cloud services, will set the benchmark on making the promise of AI real for enterprises," Coforge's Chief Executive Officer and Executive Director Sudhir Singh said in a statement. 

 

Coforge expects the acquisition to immediately scale its 'hi-tech' and healthcare verticals, expand its nearshore delivery capabilities in Latin America, and increase its client footprint in the western and midwestern regions of the US. 

 

For the September quarter, Coforge had reported a consolidated net profit of INR 3.76 billion on revenue of INR 39.86 billion. Friday, its shares ended 3.7% lower at INR 1,673.30 on the National Stock Exchange.

End

 

US$1 = INR 89.85

 

Reported by Anand JC

Edited by Saji George Titus

 

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