Coforge Eyes $1B+ Mega Deal: Board to Mull Fundraise Amid Acquisition Buzz

Deal Details

IT services leader Coforge targets a transformative acquisition valued over $1 billion, one of the sector's largest, to expand overseas footprint without entering new verticals. Sources indicate discussions with California based Encora, backed by Advent International. This follows the 2024 Cigniti Technologies buy, enhancing margins by 150-200 bps toward 20% by FY27.
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Key Highlights

• Acquisition Focus: Strengthens cloud/data/product engineering; no new verticals/geographies planned for 3-5 years.
• Funding Plan: Board to approve equity/debt raise (QIP, preferential issue) today; analyst meet follows.
• ​Financial Context: FY25 revenue hit $1.45B (32% YoY growth); eyes $2B run-rate soon via AI/cloud deals.
• ​Market Reaction: Shares fell 5-7% post board meet announcement on dilution concerns.
• ​Strategic Fit: Builds on $1.56B Sabre deal; automation at 8% revenue.

​Sources: Moneycontrol, CNBC TV18