Coforge Limited's Board of Directors has approved a significant strategic move: the acquisition of Encora US Holdco, Inc. and Encora Holdings Ltd. (Cayman) for an enterprise value of $2.35 billion. This acquisition will be executed through a share swap arrangement, involving the issuance of 9,37,96,508 Coforge equity shares at a price of ₹1,815.91 per share, aggregating to ₹1,70,32,60,16,842 (approximately ₹17,032.60 crore). This transaction is expected to create a $2.5 billion tech services powerhouse, with projected revenues of nearly $2 billion from AI-led engineering, cloud, and data services by FY27. The acquisition aims to position Coforge as a leader in AI-led engineering services, leveraging Encora's AI-native DNA and its AIVA platform. The combined entity is expected to significantly scale Coforge's HiTech and Healthcare verticals, expand its nearshore delivery capabilities in LATAM, and increase its client footprint in the US West and Midwest. The deal is structured as an all-stock transaction, with sellers rolling over their investment into Coforge, reflecting confidence in the expanded firm's prospects. In conjunction with the acquisition, Coforge also approved raising capital of up to $550 million (approximately ₹4,577 crore) through a Qualified Institutions Placement (QIP) or other permitted modes. This capital will be used to retire Encora's existing term loan. The company also approved an increase in its authorized share capital from ₹77 crore to ₹102 crore to accommodate the new share issuances. Furthermore, the Board approved the grant of special rights to the investors, including the appointment of two nominee directors on Coforge's Board, and amendments to the company's articles of association. The acquisition is subject to shareholder and regulatory approvals, including from the Reserve Bank of India and US authorities, and is expected to be completed within 4 to 6 months. The company will seek shareholder approval for these proposals through a postal ballot.