Bengaluru: Mid-tier IT services company Coforge on Monday announced that all the regulatory approvals and statutory clearances in multiple jurisdictions for the acquisition of Encora have been secured.
In December last year, Coforge announced its intent to acquire Encora to create a $2.5 billion AI-native tech services firm with a $2 billion data, AI-led engineering and cloud-based services core. The company is acquiring Encora for an enterprise value of about Rs 21,100 crore.
The integration management office continues to track workstreams across all functional areas, and the company is on course to meet its stated integration milestones, it said.
The company also added that the cost optimisation programme targeting General & Administrative (G&A) functions is progressing on track. With detailed work plans and governance structures established, the company remains confident in achieving its margin guidance as its cost optimisation plan is expected to deliver 20%-25% reduction in G&A costs for the combined business within the projected timelines.
Retail inflation rises to 13-month high of 3.4% in March"We are pleased to report that the transaction has gone exactly as per plan and every element of anticipated synergies is on course to be realised. We look forward to the two firms merging by the end of April 2026 and subsequently operating as a $2.5 billion-plus firm on a run-rate basis, with a $2 billion enterprise core of AI-led engineering, data, and cloud services. We are setting the benchmark for making the promise of AI real for enterprises," said Sudhir Singh, Chief Executive Officer and Executive Director, Coforge.
Encora has built composable agentic AI platforms - AIVATM, and has deep partnerships with AWS, Microsoft, Google and Snowflake.
Recently, Coforge launched AI Mod Squads, a new delivery model with a simple monthly subscription fee. Mod Squads combine pre-built AI agents with specialised AI engineers to deliver faster time-to-market at a lower cost for clients.