Coforge Limited has announced the signing of definitive agreements to acquire Encora, an AI-native firm specializing in AI-driven engineering, Cloud, and Data. The acquisition is expected to create a technology services powerhouse with approximately $2.5 billion in revenue. The combined entity anticipates that AI-led engineering, Data, and Cloud services alone will generate $2 billion in revenue by FY27. Specifically, the AI-led product engineering business is projected to reach over $1.25 billion, Cloud services around $500 million, and Data engineering approximately $250 million. Encora, founded in Silicon Valley, brings strengths in AI-driven engineering and operates at the intersection of AI, Cloud, and Data. It has developed an agentic AI platform called AIVA™ and holds deep partnerships with major cloud providers like AWS, Microsoft, and Google, as well as Snowflake. The transaction is valued at an Enterprise Value of $2.35 billion, with Encora's FY26E revenue projected at $600 million and an Adjusted EBITDA margin of approximately 19%. Coforge plans to fund the acquisition through a preferential allotment of equity shares, valuing the equity at approximately $1.89 billion, which will result in Encora shareholders holding about 20% of the expanded share capital upon completion. Post-acquisition, Coforge expects the combined business to operate at a 14% EBIT margin, with the acquisition projected to be EPS accretive in FY27. The deal will significantly expand Coforge's West and Mid-West US client footprint and provide scaled near-shore delivery capabilities in LATAM with over 3100 SMEs. The combined firm is expected to have forty-five US$10 million+ client relationships. Sudhir Singh, CEO of Coforge, stated that the acquisition is a defining moment, establishing a scaled AI-led engineering capability moat for the firm. Shweta Jalan, Managing Partner at Advent, expressed delight that Encora is joining forces with Coforge.