Coforge–Encora Deal: EPS-Accretive Push into AI-Led Engineering

Coforge Limited has announced the acquisition of Encora at an enterprise value of US$2.35 billion, a strategic move aimed at strengthening its position in AI-led engineering, data, and cloud services. The transaction is expected to close around Q1 FY27, subject to regulatory approvals. On a pro forma basis, the combined entity is projected to generate ~US$2.8 billion in FY27E revenue, creating a ~US$2.5 billion global technology services platform. Encora brings differentiated capabilities in AI-native product engineering, LLM engineering, and multi-agent systems, supported by its proprietary AIVA™ agentic orchestration platform. From a financial perspective, the acquisition is EPS accretive despite dilution. Coforge’s standalone EPS of US$52.1 is expected to improve to US$53.7, supported by US$20 million in assumed cost synergies and a ~90 bps improvement in EBITDA margins. The combined EBITDA margin is estimated at ~18.9%, with PAT margins improving to ~10%. Encora adds scale with ~US$600 million FY26E revenue, ~19% EBITDA margin, and a diversified delivery model with 49% workforce in India and 33% in LATAM, enhancing global delivery efficiency. Overall, the deal positions Coforge as a more AI-focused and globally competitive IT services player, with execution being the key monitorable going forward. ⚠️ Disclaimer: This is for educational purposes only and not investment advice. Please do your own research or consult a financial advisor. 🔔 Follow for more concise deal breakdowns, market insights, and student-friendly finance content.