In a strategic move set to significantly bolster its artificial intelligence (AI) capabilities, Indian IT services company Coforge Limited has announced a definitive agreement to acquire US-based AI firm Encora. The landmark transaction is valued at a substantial $2.35 billion, marking one of the major deals in the Indian IT sector.
The Structure of the Mega Deal
The Noida-headquartered company revealed the financial intricacies of the acquisition on Friday, 26 December 2025. The transaction will be primarily funded through a preferential allotment of equity shares. This allotment represents an equity value of approximately $1.89 billion. Upon the successful completion of the deal, shareholders of Encora will collectively hold a significant stake in the expanded entity. They are poised to own approximately 20% of the enlarged share capital of Coforge.
Strategic Implications for Coforge
This acquisition is a clear strategic pivot for Coforge, aiming to deeply integrate advanced AI solutions and expertise into its service portfolio. By bringing Encora under its umbrella, Coforge gains immediate access to cutting-edge AI technologies, specialized talent, and a strengthened foothold in the key North American market. The move is expected to accelerate the company's offerings in high-growth areas like generative AI, machine learning, and data analytics, providing a competitive edge in the global digital transformation arena.
Looking Ahead: Market Impact and Future
The deal underscores the aggressive growth trajectory of Indian IT firms seeking to move up the value chain through strategic acquisitions. For Coforge, absorbing Encora's AI-centric business model and clientele could lead to enhanced service delivery and innovative solutions for its global customers. The market will be closely watching the integration process and how Coforge leverages this new asset to drive future revenue growth and market share in the intensely competitive technology consulting landscape.
The announcement, made just before the close of 2025, sets the stage for a transformative year ahead for the combined entity, potentially reshaping its position among global IT and AI service providers.
