New Delhi, December 26 — Indian IT services company Coforge has announced a major expansion of its global footprint with the acquisition of U.S.-based artificial intelligence firm Encora in a deal valued at $2.35 billion, marking one of the largest overseas acquisitions by an Indian mid-tier technology company.
The acquisition is aimed at strengthening Coforge’s capabilities in artificial intelligence, digital engineering, and cloud-based services, as global demand for advanced technology solutions continues to rise across industries such as banking, healthcare, retail, and logistics.
According to company officials, the deal will significantly enhance Coforge’s presence in North America and provide access to Encora’s strong client base and specialised talent in AI-driven software development. Encora has operations across the United States and Latin America, with a reputation for delivering data-driven and automation-focused solutions.
Strategic Expansion in AI and Digital Services
Industry analysts view the acquisition as a strategic move that positions Coforge to compete more aggressively with larger global IT firms at a time when businesses are accelerating digital transformation initiatives. The integration of Encora’s AI platforms and engineering expertise is expected to help Coforge offer more end-to-end technology solutions to global clients.
“This acquisition aligns with our long-term growth strategy and strengthens our ability to deliver innovative, AI-led solutions at scale,” a senior Coforge executive said, adding that the company plans to retain Encora’s leadership team to ensure operational continuity.
Impact on Indian IT Sector
The deal highlights the growing confidence of Indian technology companies in pursuing large international acquisitions, despite global economic uncertainties. Experts say the move reflects the Indian IT sector’s shift toward high-value digital services rather than traditional outsourcing models.
Shares of Coforge saw positive interest following the announcement, with investors reacting optimistically to the company’s expansion strategy and future revenue potential from AI-led offerings.
What’s Next
The acquisition is subject to regulatory approvals and is expected to be completed in the coming months. Once finalised, Coforge plans to integrate Encora’s operations gradually while maintaining service continuity for existing clients.
With this deal, Coforge joins a growing list of Indian IT firms leveraging acquisitions to strengthen their position in the rapidly evolving global technology landscape.
