Coforge will be sold for $2.35 billion, know how many crores of dollars the US company will raise?

By Samira Vishwas On Dec 27, 2025

Coforge Encora Deal: IT services company Coforge will acquire US-based engineering services company Encora in an all-stock transaction worth $2.35 billion. After this deal, Encora shareholders will get about 21.25 percent of the post-issue equity capital of Coforge.

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Coforge Encora Deal

This acquisition will be done through share swap. Coforge will issue 93.8 million equity shares at a price of ₹1,815.91 per share, generating non-cash consideration of approximately ₹17,032 crore.

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This information regarding the acquisition was given in the statement issued after the board meeting of Coforge. Encora’s acquisition will be funded through $1.89 billion equity. The remaining amount can be raised through bridge loan or Qualified Institutional Placement (QIP).

Encora focuses on digital engineering and product development services. These include services like cloud-native applications, data engineering, platform modernization and enterprise software development.

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The company has a strong presence in North America. Encora is currently owned by private equity firm Advent International. Advent had bought a stake in Encora from Warburg Pincus in 2021 at a valuation of about $1.5 billion.

Warburg Pincus supported Encora during its early growth phase, helping it expand its offshore delivery network and expand access to US enterprise clients. Warburg later exited after the company became stronger as a global digital engineering platform.

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Revenue of the combined entity is expected to reach $2.5 billion.

Coforge said that the estimated revenue of the combined entity formed after this transaction will be approximately $2.5 billion. Of this, about $2 billion is expected to come from AI-based engineering, cloud and data services by FY27.

AI-based product engineering alone is expected to generate revenue of more than $1.25 billion. In this, cloud services can contribute about $500 million and data engineering can contribute more than $250 million. Encora reported consolidated revenues of $516 million in FY2025 and are expected to reach $600 million in FY2026.

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Coforge to raise up to $550 million

Coforge’s board has approved raising funds up to $550 million through QIP or other approved means. However, the company has said that if other funding options are finalized, then QIP will not be required.

According to Coforge, this deal will immediately strengthen its high-tech and healthcare verticals. After the acquisition, the combined run-rate of both the companies is expected to reach approximately $170 million. With this, there can be an increase of about 50 percent in North America business.

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This transaction is subject to the approval of Coforge’s shareholders and regulatory approval. The deal is likely to be completed in 4 to 6 months.

On December 26, a decline was recorded in the shares of Coforge. The stock fell 4.5 percent to a low of ₹1,658.70 on BSE. Later it closed at ₹ 1,673.25 with a fall of about 4 percent.

The market capitalization of the company is around ₹ 56,000 crore. The face value of the share is ₹2. The stock has declined by 9 percent in the last one week, whereas it has registered a rise of 8 percent in the last three months. 100 percent shares of the company are held by public shareholders.