Hyderabad, India and Princeton, N.J., May 02: Coforge, an AI-native engineering services leader, has officially announced the successful closure of its acquisition of Cigniti Technologies. The transaction received overwhelming shareholder approval and final clearance from the National Company Law Tribunal (NCLT), completing all regulatory requirements, including approvals from CCI and SEBI.
This milestone marks a defining moment for Coforge as it establishes itself as a scaled AI-led Engineering, Data, and Cloud services leader, with a $2 billion enterprise core focused exclusively on AI-driven capabilities.
The acquisition of Cigniti was aimed at strengthening client relationships, expanding Coforge’s healthcare vertical, and increasing its presence across the Midwest and Western regions of the United States. The integration has already delivered strong business outcomes.
Commenting on the development, Sudhir Singh, Chief Executive Officer and Executive Director, Coforge, said,
“The Cigniti acquisition is a textbook example of a firm making a contrarian bet that has delivered exceptional results. The expansion of EBITDA margins from 11% to 19% in just six quarters, along with the significant growth in key client revenues, reflects the value creation and execution intensity behind this integration. We will now apply this disciplined playbook to future growth opportunities, including Encora, as we accelerate our AI-native engineering strategy.”
Revenue Growth and Account Expansion
The acquisition has driven significant momentum through cross-selling and large deals. Within six months of the acquisition, the combined entity secured its first large deal worth $24 million, followed by a second deal of $62 million within nine months.
Previously, Cigniti’s top two client accounts generated approximately $15 million and $10 million annually. Post-acquisition, these accounts have expanded to approximately $45 million and $30 million respectively, highlighting substantial growth in deal size and client engagement.
Margin Expansion
Operational synergies have led to strong financial improvements:
- EBITDA margins increased from approximately 11% pre-acquisition to around 19% within five quarters
- Reported PAT margins have improved to 14–15%, positioning the company among best-in-class performers
These gains are driven by disciplined execution, cross-sell expansion, and outcome-led delivery.
The newly formed $2.5 billion entity, anchored by a $2 billion AI-led Engineering, Data, and Cloud services core, is set to redefine enterprise adoption of AI-driven solutions. This AI-focused growth strategy is expected to further accelerate Coforge’s already strong performance trajectory.
