Coforge may acquire Encora for $2B: Deal details
What's the story
Coforge Ltd is reportedly in talks to acquire Encora, a leading digital engineering firm, for an estimated $2 billion. The news comes ahead of Coforge's board meeting today to discuss a potential fundraising proposal. Following the meeting, the company will hold an analyst call later in the evening. Encora is currently owned by private equity firm Advent International, which acquired it from Warburg Pincus at a valuation of around $1.5 billion in 2021.
Company profile
Encora's growth and market position
Encora specializes in digital engineering and product development services, including cloud-native apps, data engineering, platform modernization, and enterprise software development. The company has a strong foothold in North America and has grown both organically and through acquisitions under Advent's ownership. Unlike traditional IT outsourcers, Encora has established itself as a pure-play digital engineering firm.
Financial overview
Coforge's financial standing and past acquisitions
As of March 2025, Coforge had cash and cash equivalents of nearly ₹600 crore and a net cash flow of ₹474 crore. The company had previously acquired Cigniti Technologies in 2024 for over ₹2,000 crore. To fund this acquisition, Coforge had raised capital through a Qualified Institutional Placement (QIP) process.