Coforge Completes Cigniti Acquisition, Achieves Significant Margin Expansion and Revenue Growth

Hyderabad — The acquisition of Cigniti Technologies by Coforge has reached completion, with all regulatory approvals now secured. The transaction received backing from shareholders and received final clearance from the National Company Law Tribunal (NCLT), following approvals from the Competition Commission of India (CCI) and the Securities and Exchange Board of India (SEBI).

The deal positions Coforge as a $2 billion AI-driven engineering, data, and cloud services powerhouse. The acquisition was pursued to strengthen client relationships in the healthcare sector, bolster operations across the US Midwest and Western regions, and deepen the company's service offerings.

According to Sudhir Singh, Chief Executive Officer and Executive Director at Coforge, the integration has delivered measurable results. "The Cigniti acquisition represents a contrarian decision that has produced exceptional returns," Singh stated. "Within six quarters, the acquired business expanded its EBITDA margin from 11% to 19%. More tellingly, the top two clients from the acquisition, which generated $25 million annually before the deal, now operate at $75 million annually."

Remarkable Client Growth

The integration has sparked unprecedented business development momentum. Cigniti, which had never secured a large-scale contract during its 25-year independent operation, signed its first major deal worth $24 million within six months of joining Coforge. A second significant contract valued at $62 million followed nine months after the acquisition, underscoring the combined entity's enhanced market position.

Client scaling has been equally impressive. The two largest accounts inherited from Cigniti have expanded substantially. One account grew from $15 million in annual revenue to approximately $45 million, while another scaled from $10 million to roughly $30 million, demonstrating the effectiveness of cross-selling initiatives and integrated service delivery.

Financial Performance

Operational improvements have materialized across financial metrics. Beyond the EBITDA expansion from 11% to 19% over five quarters, profit after tax has reached 14-15% levels, placing the business among top performers in its peer group. These gains reflect synergies in operations and general administrative functions, combined with disciplined execution across sales, pre-sales, and delivery teams.

The combined entity, now valued at approximately $2.5 billion, maintains a $2 billion core dedicated to AI-native engineering, data, and cloud services. This concentration on artificial intelligence-driven capabilities positions the firm to translate AI's potential into tangible enterprise solutions while pursuing accelerated global expansion.