Coforge to acquire US co Encora for ₹17k cr

Acquisition to scale hitech and healthcare verticals, expand nearshore delivery capacity and increase client base in US

- SANAL SUDEVAN @ Chennai

INDIA'S IT services company Coforge, formerly NIIT Technologies, will acquire US-based engineering services company Encora for ₹17,032 crore through a swap of 93.8 million equity shares at ₹1,815.91 each, which is 14.5% premium to Friday’s close. Coforge is also planning to pay off Encora’s debt by raising a term loan of $550 million funds through a bridge loan or QIP issue.

The company will acquire 100% of shares of Encora US Holdco, Inc. and Encora Holdings Ltd (Cayman) from Advent International, Warburg Pincus and other minority shareholders, whereas Encora will have 21.25% in the combined firm, Coforge said in regulatory filings. The enterprise value of the transaction is $2.35 billion.