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- Encora
Encora Acquisition, Valuation, Funding & Investors
Encora was acquired by Coforge for $2.4B in December 2025, a 3.9x multiple on $600M of revenue.
Encora revenue at acquisition
$600M
Last twelve months · Dec 2025
Encora revenue multiple at acquisition
3.9x
EV/Revenue · Dec 2025
Encora EBITDA multiple at acquisition
20.6x
EV/EBITDA · Dec 2025
About Encora
Encora is a Scottsdale-headquartered provider of digital engineering services, specializing in software product development, cloud migration, data analytics, and AI for enterprise clients.
Founded
2003
HQ
Website
Status
Acquired
Customer focus
B2B
Revenue model
Services
Revenue
$600M (Dec 2025)
Valuation
$2.4B (acquired Dec 2025)
Sectors
Encora Acquisition
Encora was acquired by Coforge for $2.4B on 26 December 2025.
The acquisition price implies a 3.9x revenue and 20.6x EBITDA multiple on $600M of revenue.
Before the acquisition Encora had raised $200M across 1 funding round.
Encora, a Silicon Valley-based AI-native engineering services firm specializing in AI-led engineering, data, cloud services, and capabilities in healthcare across pharma, medtech, and healthtech, provides services to 11 clients each spending over $10 million annually. Coforge, a Noida-based IT services provider listed on Indian stock exchanges, agreed to acquire Encora for an enterprise value of $2.35 billion from private equity firms Advent International, Warburg Pincus, and other minority shareholders. The deal, announced December 26, 2025, creates a $2.5 billion tech services powerhouse, with Encora's FY26E revenue at $600 million and adjusted EBITDA margin of 19%; post-acquisition, Encora shareholders will own about 20-21.25% of Coforge's expanded equity base. Funding includes a preferential allotment of equity shares worth approximately $1.89 billion and a bridge loan up to $550 million to refinance Encora's debt, with the combined entity expected to operate at a 14% EBIT margin and be EPS accretive in FY27. The acquisition strengthens Coforge's Hi-Tech and healthcare verticals to $170 million+ run-rates each, boosts North America revenue by 50% to over $1.4 billion, expands AI-led product engineering to $1.25 billion, cloud services to $500 million, and data engineering to $250 million, while adding 3,100+ engineering and AI specialists in Latin America for nearshore delivery to US West and Midwest clients. This marks Coforge's largest ER&D takeover and fourth acquisition in 2025 after Cigniti in 2024, building a scaled AI-led engineering moat for enterprise data cores and cloud foundations, subject to regulatory approvals. Coforge CEO Sudhir Singh described the deal as a defining moment establishing AI-led capabilities, with proven cross-selling from prior acquisitions like Cigniti growing all $10 million+ accounts; BDA Partners acted as exclusive investment banker, JSA advised Coforge, and Khaitan & Co. advised Encora.
| Acquirer | Date | Type | Price | EV/Revenue | EV/EBITDA |
|---|---|---|---|---|---|
| 26 Dec 2025 | Strategic M&A | $2.4B | 3.9x | 20.6x |
Encora Funding History
Encora has raised a total of $200M across 1 funding round.
Encora funding rounds
| Date | Stage | Investors | Raised | Deal Summary |
|---|---|---|---|---|
| Aug 2019 | Undisclosed stage | Warburg Pincus (lead) | $200M | Encora (formerly Indecomm Digital Services) is a global digital engineering services company providing outsourced software product development to independent software vendors, technology companies, and enterprises, with operations in nearshore locations like Mexico and Costa Rica, and offshore in India, Malaysia, and Singapore. Encora, headquartered in Scottsdale, Arizona (US), had unified its subsidiaries under the Encora brand by August 2020 and employed around 4,000 engineers globally across 40 offices. Warburg Pincus acquired a majority stake in Encora for $200 million in August 2019 from existing investor Capital Square Partners and promoters. The investment supported growth in product engineering services focused on AI, machine learning, data science, and cloud. In December 2021, Advent International acquired a majority stake in Encora at a $1.5 billion valuation, with Warburg Pincus retaining a minority position after approximately 2.5 years of ownership. This secondary transaction highlights significant value creation, as Warburg exited part of its stake at a firm enterprise value of $1.5 billion. |
Who has invested in Encora?
1 investor has backed Encora across its funding rounds, including Warburg Pincus.
Lead investors include Warburg Pincus.
Encora Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
This data is available for Pro users. Sign up to see all 1 Encora investors. Start Free Trial | ||||
Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
Sign up to see data on 350K+ funding rounds and disclosed revenue and EBITDA valuation multiples, from seed, through growth stage, to pre-IPO.
Start Free TrialAcquisitions by Encora
Encora has acquired 5 companies to date.
Last acquisition by Encora was on February 6th 2025. Encora acquired DMI Business Capabilities for undisclosed valuation.
Latest Acquisitions by Encora
| Description | DMI Business Capabilities is a Bethesda-headquartered division of Digital Management, Inc. delivering enterprise mobility, cybersecurity, and digital transformation consulting. The unit supports federal agencies and Fortune 1000 companies with application development and managed IT services across the United States. | Softelligence is a Bucharest-headquartered software engineering consultancy with global delivery centers. It architects AI-driven platforms for insurance and banking clients like ING and Allianz, using cloud-native technologies, data analytics, and automation. Extending to telecom and retail with agile teams, Softelligence deploys solutions on AWS and Azure. Founded in 2004, the group serves Europe and North America from offices in Romania, Poland, and the UK. | Excellarate is a Philadelphia-headquartered consultancy offering digital transformation services tailored to healthcare, insurance, and financial services industries. The firm develops custom software platforms for patient engagement, claims processing automation, and regulatory compliance tools. Excellarate serves clients like regional hospitals and mid-sized insurers with cloud migration projects and data integration solutions using AWS and Azure infrastructures. Founded in 2016, the company employs agile methodologies to deploy AI-enhanced underwriting systems and telemedicine applications across the United States. | Daitan Group is a Campbell-headquartered software development company with engineering teams in Brazil and sales offices in the United States and Canada. Founded in 2004, it engineers data pipelines, BI analytics, microservices on Kubernetes, and cloud infrastructures across AWS, Azure, and Google Cloud for global corporations. Specializing in fintech, healthcare, and e-commerce projects, the firm applies agile, DevOps, and UX design methodologies to de-risk initiatives and shorten market entry timelines. | |
| HQ Country | |||||
| HQ City | Washington, DC | Bucharest | Philadelphia, PA | San Francisco, CA | |
| Deal Date | 6 Feb 2025 | 16 May 2023 | 26 Jan 2023 | 6 Jul 2021 | |
| Valuation | undisclosed | undisclosed | undisclosed | undisclosed | |
| EV/Revenue | |||||
| EV/EBITDA | |||||
This data is available for Pro users. Sign up to see all Encora acquisitions and their M&A valuation multiples. Start Free Trial | |||||
Encora Competitors
Encora competitors include listed companies like Posco DX, ePlus, Tieto and SoftwareOne, and private ones like MegazoneCloud and CarDekho.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Publicly listed | $783M | $56M | $2.3B | 3.0x | ||
| Publicly listed | $2.4B | $201M | $2.4B | 0.8x | ||
| Publicly listed | $2.1B | $186M | $2.4B | 1.4x | ||
| Publicly listed | $1.5B | $191M | $2.4B | 1.6x | ||
| Private | - | - | $1.8B | - | ||
| Private | $299M | - | $1.2B | 4.0x |
Encora Public Comps
Encora is no longer listed, but its public comps include Posco DX, ePlus, Tieto, SoftwareOne, Al Moammar Information, Rakus Co, Tata Elxsi, Netcompany, Atea and Beijing Teamsun Tech.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $783M | $56M | 2.8x | 3.0x | 38.8x | 48.8x | |||
| $2.4B | $201M | 0.8x | 0.8x | 10.3x | 10.0x | |||
| $2.1B | $186M | 1.3x | 1.4x | 15.2x | 7.9x | |||
| $1.5B | $191M | 2.0x | 1.6x | 15.9x | 7.2x | |||
| $339M | $48M | 8.0x | 6.8x | 56.8x | 93.8x | |||
| $388M | $130M | 6.1x | 6.1x | 18.1x | 18.0x | |||
| $392M | $83M | 5.2x | 4.9x | 24.6x | 21.8x | |||
| $1.2B | $141M | 2.3x | 2.0x | 19.8x | 12.4x | |||
This data is available for Pro users. Sign up to see all Encora competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Encora
| When was Encora founded? | Encora was founded in 2003. |
| Where is Encora headquartered? | Encora is headquartered in Phoenix, AZ, United States. |
| Is Encora publicly listed? | No, Encora was acquired by Coforge in December 2025. |
| Who acquired Encora? | Encora was acquired by Coforge in December 2025. |
| How much was Encora acquired for? | Encora was acquired for $2.4B in December 2025, a 3.9x revenue multiple. |
| How much funding has Encora raised? | Encora has raised $200M across 1 funding round. |
| What was Encora's last funding round? | Encora's last funding round was a $200M undisclosed-stage round in August 2019, led by Warburg Pincus. |
| Who are Encora's investors? | Encora's investors include Warburg Pincus. |
| Which companies are comparable to Encora? | Companies comparable to Encora include Posco DX, ePlus, Tieto, SoftwareOne, MegazoneCloud and CarDekho. |
| How many companies has Encora acquired? | Encora has acquired 5 companies, including DMI Business Capabilities, Softelligence, Excellarate, Daitan Group and Avantica Technologies. |
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