Coforge Announces Investor Presentation on Encora Acquisition

Coforge Ltd has issued an investor presentation regarding its acquisition of Encora. The presentation, dated December 28, 2025, is in accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It outlines the financial and operational aspects of the acquisition, which is expected to close around the first quarter of FY27. The document provides a comprehensive overview of the transaction’s financial implications and strategic objectives.

The acquisition is projected to be EPS accretive, with pro forma financials indicating a combined revenue of approximately USD 2,826 million for FY27. The presentation details a year-on-year revenue growth assumption of 15% for illustration purposes, although this is not management guidance. The combined EBITDA is estimated at USD 533 million, with an EBITDA margin of 18.9%. The transaction anticipates a 90 basis points increase in EBITDA margin due to cost synergies, estimated at USD 20 million. The amortization assumption is based on an enterprise value of USD 2.35 billion, with 20% allocated to customer relationships over a 12-year useful life.

Operationally, the presentation highlights Encora’s focus on AI-led offerings, including AI for engineering, operations, and business. Encora’s delivery model features a global workforce of approximately 9,100 employees, with significant presence in India and LATAM. The acquisition aims to enhance Coforge’s capabilities in AI-native services, leveraging Encora’s expertise in sectors such as Hi-Tech, Healthcare, and BFSI. The combined entity will have a workforce of around 44,000 employees, with expanded operations in North America and LATAM.

The timeline for the transaction’s completion is projected around the first quarter of FY27. The presentation includes assumptions regarding the issuance of shares to Encora’s sellers and potential Qualified Institutional Placement (QIP) for term loan retirement. The preferential issuance price is set at INR 1,815.91 per share, representing an 8.5% premium to the closing price as of the signing date. The QIP, if pursued, will occur around the transaction’s closing, approximately six months from the presentation date.

The parties involved in the transaction include Coforge Ltd and Encora, with Coforge issuing shares to Encora’s sellers. The presentation outlines the potential issuance of 93.8 million Coforge shares to Encora’s sellers and 27.2 million shares to QIP investors. The outstanding shares of Coforge post-transaction and QIP are estimated at 468.7 million. The transaction’s financial assumptions include no interest expense for retiring Encora’s term loan and a tax benefit of USD 4 million from amortization in the Encora Group in the US.

The market context of the acquisition positions Coforge as a significant player in the tech services sector, with a combined revenue of approximately USD 2.5 billion. The strategic focus on AI-led engineering, data, and cloud services aims to strengthen Coforge’s market presence and operational capabilities. The presentation emphasizes the combined entity’s potential to leverage Encora’s AI-native services and distributed delivery model to enhance client engagement and service delivery.

Coforge Ltd is a global IT services company focusing on digital transformation and technology solutions. The company’s strategic priorities include expanding its service offerings in AI and cloud technologies, enhancing its global delivery capabilities, and strengthening its market position through strategic acquisitions and partnerships.