India, Dec. 26 -- Coforge Ltd. has agreed to acquire Encora Inc., a Silicon Valley-based software engineering firm, at an enterprise valuation of $2.35 billion, betting on the surging demand for AI-driven technology services.

The Coforge-Encora acquisition will be funded via a preferential allotment of equity shares valued at about $1.89 billion, according to an exchange filing on Friday (26 December 2025). Coforge will also pay off Encora's debt through a fundraising of up to $500 million, by way of a bridge loan or via a qualified institutional placement of its shares.

Upon completion of the deal, Encora's current shareholders-including private equity firms Advent International and Warburg Pincus-will hold about 20% of the expanded sh...