Coforge completes Encora acquisition; secures $550 million loan, drops QIP plan

IT services firm Coforge has completed the acquisition of Silicon Valley-based AI firm Encora for an enterprise value of $2.5 billion.

To fund the transaction, Coforge has secured a three-year loan facility of $550 million at a fixed interest rate of 4.6%. Consequently, the firm has cancelled all previous plans to raise capital through a Qualified Institutional Placement (QIP), the company said in a regulatory filing on Thursday.

The $550-million syndicated loan facility is backed by a consortium of major global lenders, including JPMorgan Chase Bank, Bank of America, Citibank, HSBC, and BNP Paribas.


Repayment of the loan will commence six months from the drawdown.

As part of the acquisition, announced in December 2025, Coforge's board approved the allotment of over 9.37 crore equity shares on a preferential basis to Encora sellers - Encora Holdco Limited and AI Altius Parent (Cayman) Limited. The shares were allotted at an issue price of Rs 1,815.91 per Share.

The financial consolidation of Encora into Coforge will take effect from May 1, 2026.

"Coforge FY27 results will reflect eleven months of impact from Encora operations. The firm is pleased to share that the integration activities related to Encora integration into Coforge are ahead of plan, with the combined cost synergies on G&A expected to be between 20 and 25%. All Encora leaders whom the firm wished to retain have accepted roles within the new composite structure that has been rolled out with immediate effect," the company said in a statement.