CHENNAI: IT services provider Coforge Ltd (formerly NIIT Technologies Ltd,) on Friday announced that it will acquire US-based technology firm Encora from private equity major Advent International in a deal valued at an enterprise value of $2.35 billion, marking one of the largest overseas acquisitions by an Indian mid-tier IT company.
The acquisition is expected to significantly expand Coforge’s presence in the North American market and strengthen its capabilities in digital engineering, cloud services and data-led solutions. Encora, which has a strong footprint in the US and delivery centres across Latin America and India, serves clients across sectors such as financial services, healthcare, technology and consumer industries.
Coforge said the transaction aligns with its long-term growth strategy of scaling high-value digital offerings and deepening relationships with global clients. The deal is also likely to enhance Coforge’s access to specialised talent and accelerate its move up the value chain in a competitive global IT services market.
"Encora, with its Silicon Valley roots, brings strong AI-native DNA and a composable agentic platform (AIVA) that enables to build intelligent workflows,” Coforge said in an exchange filing, adding that financially, the combined entity is projected to become a $2.5 billion tech services powerhouse.
According to Coforge, in FY27, nearly $2 billion revenue is expected to accrue from the enterprise core of AI-led engineering, cloud and data services alone. "The acquisition will immediately scale Coforge’s hitech and healthcare verticals, expand its nearshore delivery capabilities in LATAM, and increase its client footprint in the US West and Midwest,” said the Indian IT service player.
Encora is backed by Advent International and Warburg Pincus and offers AI solutions for product, cloud and data engineering, estimating that it would help generate revenue of $2 billion in next financial year. Encora has a large and widespread near-shore delivery capability with over 3100 delivery team strength in its LATAM Delivery centers. The value of the transaction is $2.35 billion, of which $1.89 billion will financed through equity and balance through bridge loan or QIP. The pricing of QIP will be determined by SEBI regulations at the time of transactions.
The acquisition is subject to shareholder’s approval which will be secured within 30 days, and regulatory approvals which are expected to take another four to six months. Financially, the consolidated turnover of Encora Group for FY26 is $600 million, and in FY24 and FY25, the consolidated turnover was $481 million and $516 million, respectively. According to the statement, Coforge’s North America unit generated only 25% revenue from US West and Mid-west, whereas post-acquisition the north America business is expected to witness a jump of 50% to $1.4 billion. This is third acquisition by Coforge in 2025 as it had acquired US-based Rythmos and Australia-based TMLabs for $30 million and 20 million Australian dollar in March 2025.
Coforge added that the acquisition will be funded through a combination of debt and internal accruals, and is subject to customary regulatory approvals and closing conditions. Upon completion, Encora will become a wholly owned subsidiary of Coforge