Home / Business and Economy / Coforge Seals $2.5B Encora Deal, Secures $550M Loan
Coforge Seals $2.5B Encora Deal, Secures $550M Loan
23 Apr
Summary
- Coforge finalized Encora acquisition for $2.5 billion enterprise value.
- A $550 million loan replaced previous capital raising plans.
- Encora's financial consolidation into Coforge begins May 1, 2026.
IT services firm Coforge has completed its acquisition of Silicon Valley-based AI firm Encora for an enterprise value of $2.5 billion. To finance this substantial transaction, Coforge secured a three-year loan facility totaling $550 million at a fixed interest rate of 4.6%. This financing has led to the cancellation of earlier plans for capital raising through a Qualified Institutional Placement (QIP).
The $550 million syndicated loan facility is supported by a consortium of prominent global lenders, including JPMorgan Chase Bank, Bank of America, Citibank, HSBC, and BNP Paribas. Repayment of this loan is scheduled to begin six months after its drawdown.
As part of the acquisition, Coforge's board approved the allotment of over 9.37 crore equity shares on a preferential basis to Encora sellers. The financial consolidation of Encora into Coforge is slated to take effect from May 1, 2026. Coforge anticipates that its FY27 results will reflect eleven months of impact from Encora's operations, with integration activities progressing ahead of schedule.
