Coforge’s Enora deal puts execution in focus

FOR COFORGE, THE acquisition of US-based Encora is less about immediate market reaction and more about execution over the next 12-18 months, analysts said.

- URVI MALVANIA

The $1.89 billion all-stock transaction, valued at $2.35 billion at the enterprise level, is the largest deal in Coforge's history and significantly reshapes its scale, margin profile and balance sheet.

The task before the mid-tier IT services firm is threefold: integrate a business nearly half its size, re-accelerate Encora's organic growth, and address near-term funding concerns without diluting returns. Analysts broadly agree that strategic logic is in place, but outcomes will hinge on delivery.