Coforge has announced a definitive agreement to acquire US based digital engineering and artificial intelligence specialist Encora for an enterprise value of $2.35 billion, marking one of the most significant consolidation moves in India’s IT and AI services sector.

The transaction, structured as an all stock deal, is designed to significantly expand Coforge’s AI native engineering capabilities while deepening its footprint across key growth markets including the United States and Latin America. Following completion, the combined organisation is expected to approach $2 billion in annual revenues by financial year 2027, with healthy margin expansion and earnings accretion.

Encora brings strong expertise across AI driven product engineering, cloud modernisation, data platforms and intelligent automation, supported by a skilled global workforce of more than 3,000 engineers. Its strong client base across technology, healthcare and digital native enterprises complements Coforge’s existing strengths in large scale enterprise transformation.

Industry observers see the acquisition as a decisive step in Coforge’s transition from a traditional IT services provider to a full spectrum AI engineering and digital solutions leader. The added scale and depth are expected to enhance the company’s competitiveness against larger global peers while positioning it among the top tier of Indian IT services firms.

For India’s AI ecosystem, the deal underscores a broader shift towards capability led growth, where Indian technology companies are investing aggressively in advanced AI engineering, near shore delivery and high value digital services to capture global demand.

The transaction is subject to customary regulatory approvals and is expected to close within the coming months.