Coforge just acquired Silicon Valley AI firm Encora — Here’s why it could shake up the tech market

The transaction is subject to customary closing conditions and regulatory approvals, Coforge said.

Encora provides engineering services to Fortune 1000 enterprises and digital-native companies, operating at the convergence of AI, cloud, and data. Its capabilities include Intelligent Process Design, Agent-Native Product Engineering, Core Modernization, AI Foundation, Data Readiness, and AIOps. Encora has also built one of the industry’s first composable agentic AI platforms — AIVA and maintains partnerships with AWS, Microsoft, Google, and Snowflake.

Following the acquisition, the combined entity is expected to generate a US$2.5 billion revenue footprint, with AI-led engineering, data, and cloud services alone projected to deliver US$2 billion in FY27. The breakdown includes:

AI-led product engineering: US$1.25B+

Cloud services: ~US$500M

Data engineering: ~US$250M+

Coforge’s Hi-Tech and Healthcare verticals are expected to reach an annualized revenue run rate of US$170M+ each, immediately post-acquisition.

The acquisition also expands Coforge’s near-shore delivery capability in LATAM and its US client footprint, particularly in the West and Midwest, which previously contributed only 25% of US revenues.

The combined company will have 45 client relationships exceeding US$10M each, with the firm aiming to scale these quickly based on its strong acquisition track record.

Transaction details

Encora’s FY26E revenue: US$600M

Adjusted EBITDA margin: ~19%

Enterprise Value: US$2.35B

Funded through preferential allotment of equity shares (~US$1.89B), giving Encora shareholders ~20% of the expanded Coforge share capital

Combined EBIT margin: 14%

Expected to be EPS accretive in FY27

Coforge CEO Sudhir Singh said, “The Encora acquisition is a defining moment for our organization. It establishes a scaled AI-led engineering capability moat, purpose-built for AI. The new US$2.5B firm, with a US$2B enterprise core of AI-led engineering, data, and cloud services, will set the benchmark for making AI real for enterprises.”

Advent managing partner Shweta Jalan added, “Coforge’s investment in Encora reflects Advent’s philosophy of investing in promising businesses and building them into industry leaders. We are delighted that Encora has found the right home and are confident it will become one of the most admired AI-led engineering companies globally.”