Mumbai: IT services firm Coforge on Sunday said its proposed acquisition of US-based Encora is expected to be earnings-per-share (EPS) accretive, supported by cost synergies and scale benefits, as the company shared pro forma financials in an investor presentation.
According to the presentation, the combined Coforge–Encora entity is projected to report pro forma revenue of $2.83 billion in FY27, with EBITDA of $533 million and an EBITDA margin of 18.9%, compared with Coforge’s standalone margin of 18%. The company said it has assumed cost synergies of about $20 million, translating into a margin expansion of nearly 90 basis points.
On a pro forma basis, the combined profit after tax is estimated at $283 million, with EPS rising to $53.7, compared with Coforge’s standalone EPS of $52.1, indicating accretion despite the higher share base post-transaction �. The transaction is expected to close around Q1 FY27, subject to regulatory approvals, and the financials presented are illustrative and not management guidance.
Encora has an enterprise value of about $2.35 billion, with Coforge proposing to fund part of the transaction through a preferential allotment of shares to Encora’s sellers and potentially a qualified institutional placement (QIP) of around $550 million to retire Encora’s term loan. The indicative share issue price for the preferential allotment has been assumed at ₹1,815.91 per share, a premium to Coforge’s recent market price.
Encora, founded in Silicon Valley, is positioned as an AI-native engineering services firm with an estimated FY26 revenue of about $600 million and EBITDA margins of 19%. It employs around 9,100 people globally, with a significant delivery presence in India and Latin America, and serves clients across hi-tech, healthcare and BFSI segments.
Post-acquisition, Coforge said the combined entity would emerge as a roughly $2.5-billion tech services player with about 44,000 employees, a stronger presence in North America and Latin America, and over 45 clients with annual revenues exceeding $10 million. The deal aligns with Coforge’s strategy to deepen its AI-led engineering, data and cloud offerings and scale its presence in high-growth digital transformation segments.