Indian IT services company Coforge announced on Friday that it has agreed to acquire Encora, a U.S.-based artificial intelligence and software engineering firm, in a deal valued at $2.35 billion on an enterprise basis. The acquisition is aimed at strengthening Coforge’s in-house AI capabilities and accelerating its expansion in key markets, particularly the United States and Latin America. Encora, known for its expertise in AI-driven software development, cloud transformation, and digital engineering, brings a strong portfolio of clients and technical talent to Coforge. The deal marks a significant step in Coforge’s strategy to pivot toward higher-value, technology-led services amid growing demand for AI and automation solutions. The acquisition will allow Coforge to deepen its offerings in generative AI, machine learning, and intelligent automation, enabling it to deliver more comprehensive digital transformation services to global clients. With Encora’s established presence in North and South America, Coforge also aims to enhance its regional footprint and better serve clients across the Americas. The transaction is expected to close in the first half of 2025, subject to regulatory approvals and customary closing conditions. Coforge said the deal will be funded through a combination of cash and equity. This move comes as Indian IT firms increasingly look to bolster their AI and cloud capabilities through strategic acquisitions, driven by rising client demand and the need to stay competitive against global tech players. Coforge’s acquisition of Encora underscores its ambition to transition from a traditional IT services provider to a next-generation technology partner focused on innovation and AI-led growth.