Mumbai/IBNS, Dec. 29 -- Shares of Coforge rose 2 per cent in early trade on Monday, snapping a three-session losing streak, media reports said.

Coforge said the acquisition will be executed through a share-swap arrangement.

According to a company statement, the transaction will be funded through a preferential allotment of equity shares representing an equity value of approximately $1.89 billion. Following the completion of the deal, Encora shareholders will hold around 20 per cent of Coforge's expanded share capital.

The combined entity is expected to operate at an EBIT margin of 14 per cent, while the acquisition is projected to be earnings-per-share (EPS) accretive from FY27, the company added.

"Coforge's investment in Encora is a ...