The deal, which aims to bolster Coforge’s AI capabilities and expand its presence in the U.S. and Latin America, marks one of the company’s biggest international bets to date.
Encora, backed by private equity players Advent International and Warburg Pincus, offers AI-led solutions in product, cloud, and data engineering. Coforge estimates that the combined entity could generate $2 billion in annual revenues by March 2027.
The transaction is expected to close around the first quarter of FY27, with financials presented on a pro forma basis.
Coforge has assumed cost synergies of $20 million from the deal, while amortisation is calculated on the $2.35 billion enterprise value, with 20% allocated to customer relationships over a 12-year life.
The pro forma financials exclude one-time transaction costs and include a $4 million tax benefit anticipated in FY27 from U.S. amortisation.
The preferential issue price to Encora sellers has been set at Rs 1,815.91 per share, a premium of 8.5% over the signing date’s closing price of Rs 1,674.A Qualified Institutional Placement (QIP) is among the funding options being considered to retire Encora’s term loan, although it would likely occur closer to the transaction closing. A foreign exchange rate of 89.77 was used to convert the equity value as of December 24, 2025.
On Friday, Coforge shares closed 3.7% lower at Rs 1,673.25 on the BSE.
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