Coforge Share Price in Focus; To Acquire US-Based Encora in $2.35 Billion Deal

Coforge has announced the acquisition of US-based engineering services firm Encora in an all-stock transaction valued at $2.35 billion, as per exchange filing. The deal will be executed through a share swap, under which Coforge will issue about 93.8 million equity shares priced at ₹1,815.91 each.  

This implies a non-cash consideration of nearly ₹17,032 crore. Encora’s shareholders will hold roughly 21.25% of Coforge’s post-issue equity. 

Funding Structure 

The equity portion of the transaction amounts to $1.89 billion and will be funded through a preferential allotment of shares. The remaining amount will be used to retire Encora’s existing term loan through a bridge loan or alternative funding options.  

Coforge’s board has approved raising up to $550 million through a qualified institutional placement or other permitted routes, if required. 

Encora’s Financial Performance 

Encora reported consolidated revenue of $516 million in FY25 and is projected to generate about $600 million in FY26. The company operates with an adjusted EBITDA margin of around 19%.  

Following the acquisition, the combined entity is expected to operate at an EBIT margin of about 14% after amortisation of intangibles. The transaction is not expected to be earnings dilutive. 

Scale and Revenue Mix 

Coforge said the acquisition will create a technology services company with projected revenue of about $2.5 billion. AI-led engineering, cloud and data services are expected to contribute close to $2 billion by FY27.  

Product engineering revenue is estimated at $1.25 billion, cloud services at around $500 million, and data engineering at about $250 million. 

Geographic and Client Impact 

The transaction expands Coforge’s nearshore delivery footprint through Encora’s presence in Latin America, which includes more than 3,100 professionals. It also increases  

Coforge’s exposure to the western and midwestern regions of the US. The combined entity will have 45 client relationships generating over $10 million each annually. 

Approvals and Timeline 

Encora is being acquired from private equity investors including Advent International and Warburg Pincus, who will roll over their holdings into Coforge equity.  

The deal is subject to shareholder and regulatory approvals and is expected to close within four to 6 months. 

Coforge Share Price Performance  

As of December 26, 2025, 3:30 pm, Coforge share price closed at ₹1,674, a 3.67% decrease from the previous closing price. 

Read More:  Coforge Share Price in Focus Today Ahead of Board Meet on Fund Raising Plans! 

Conclusion 

The acquisition of Encora increases its scale and adds to its presence in engineering services across key markets. The deal is subject to shareholder and regulatory approvals and is expected to close within four to 6 months. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.