India’s Coforge Accelerates Global AI Expansion With Strategic Encora Acquisition

New Delhi – India’s information technology sector marked a major milestone as Coforge announced a transformative acquisition of artificial intelligence firm Encora, reinforcing its ambition to become a global leader in next-generation digital services.

The $2.35 billion transaction reflects growing confidence in India’s technology companies to execute large, value-driven cross-border deals while deepening their expertise in artificial intelligence and advanced engineering services.

With this acquisition, Coforge significantly enhances its in-house AI, cloud, data engineering, and product development capabilities, positioning itself strongly in a market increasingly shaped by intelligent automation.

Encora brings deep domain knowledge across digital product engineering, AI-led platforms, and enterprise transformation, adding scale and sophistication to Coforge’s existing service portfolio.

Industry observers view the deal as a forward-looking move that aligns with global demand for AI-powered solutions across banking, healthcare, retail, travel, and technology sectors.

The combination is expected to create a stronger, more diversified technology services provider with an expanded footprint in North America and Latin America, two of the world’s most dynamic digital markets.

Coforge already derives a majority of its revenues from the Americas, and the Encora acquisition further strengthens its presence in key U.S. regions, including the West and Midwest.

Access to Encora’s skilled workforce of more than 3,000 professionals in Latin America adds an important near-shore delivery advantage for global clients seeking speed, flexibility, and cost efficiency.

Financially, the deal is structured to support long-term growth while maintaining balance sheet discipline, with Encora shareholders receiving a meaningful stake in the combined entity.

This structure reflects alignment of interests and confidence in the merged company’s future performance and growth trajectory.

Coforge has outlined plans to fund the transaction through a mix of preference shares and targeted fundraising, demonstrating prudent capital planning for a transaction of this scale.

The company has also indicated that the acquisition is expected to be earnings-accretive within the next few fiscal cycles, reinforcing shareholder value creation.

With Encora’s strong presence in AI-led product engineering, Coforge expects to unlock new revenue streams as enterprises globally increase investments in intelligent systems.

Management estimates that the combined capabilities could support ambitious revenue growth targets over the coming years, supported by sustained demand for digital modernization.

The deal also elevates Coforge’s standing within India’s competitive IT landscape, potentially positioning it among the country’s top tier of technology service providers.

Analysts note that scale, specialized talent, and differentiated AI offerings are becoming decisive factors as clients consolidate vendors and seek strategic digital partners.

Encora’s backing by global private equity firms underscores the quality of its operations and the maturity of its technology platforms, adding credibility to the acquisition.

Beyond immediate financial metrics, the transaction highlights India’s growing role as a global hub for AI innovation, engineering excellence, and digital transformation leadership.

As enterprises worldwide navigate rapid technological change, Indian IT firms like Coforge are increasingly shaping the future of AI-driven services rather than merely responding to it.

The acquisition is expected to close within the next few months, subject to customary approvals, setting the stage for integration and accelerated innovation.

Market sentiment around the deal reflects optimism that strategic consolidation will enable Indian IT companies to compete more effectively with global peers.

By combining scale, talent, and advanced AI capabilities, Coforge is positioning itself to deliver higher-value solutions in an increasingly competitive digital economy.

The Encora acquisition ultimately signals confidence in sustained global demand for AI-enabled transformation and India’s ability to lead that shift.