New Delhi: IT services firm Coforge’s board is expected to meet today to discuss the feasibility of acquiring Encora, a US-based digital engineering company, for more than $1 billion. This comes at a time when the company has almost negligible cash reserves with the aim of reaching $2 billion in revenue by the end of 2026.
Coforge had announced its scheduled board meeting for December 26, along with an analyst meeting on the same evening.
Encora, founded by Venu Raghavan, provides digital and software engineering services to clients across the US, Asia Pacific, and the Americas. It has more than 9,000 employees across 40+ offices and innovation labs. Private equity firm Advent International acquired a majority stake in the company in 2021 for $1.5 billion.
If Coforge decides to go ahead, the company will have to fund the acquisition through a mix of debt and equity. Coforge had earlier raised ₹2,240 crore through a qualified institutional placement (QIP) to fund its Cigniti Technologies acquisition. This had created three new verticals for Coforge: Retail, Healthcare and Hi Tech. Encora’s competencies is aimed at strengthening these verticals.
The IT services company has seen strong earnings lately, with its net profits rising 85.95% year on year (YoY) to ₹375.8 crorein Q2FY26 from ₹202.1 crore in the same period last year. The company’s revenue from operations has climbed 31.37% to ₹3,985.7 crore in Q2FY26 from ₹3,025.6 crore in Q2FY25.
For Coforge, this acquisition will strengthen its role in data, cloud and product engineering capabilities, moving away from its pure play IT services positioning.
In March 2025, the company acquired US-based Rythamos for $30 million and Australia-based TMLabs for A$20 million, strengthening its core capabilities.
