$2.5B Coforge–Encora deal short‑term dilution, long‑term AI upside скачать в хорошем качестве

$2.5B Coforge–Encora deal short‑term dilution, long‑term AI upside

🚀 COFORGE x ENCORA: $2.5B AI TRANSFORMATION DECODED! 🤖💰 📈 The acquisition conference call was electric—aggressively celebratory, branding this a "defining moment" rewriting Coforge's DNA with Encora's Silicon Valley edge. Sellers roll 100% equity (Advent & Warburg grab 20-21% stake)—zero cash out screams conviction! But dilution and growth questions loomed large. 🔥Top 3 Takeaways: ✨Scale & Moat: $2.5B EV on Encora's revenue builds "AI, Engineering, Data" fortress—premium pricing ahead! ✨Seller Bet: PE giants all-in on combined upside—no exit, pure belief in synergies. ✨EPS Neutral Day 1: Equity issuance + $550M debt refinance offset by tax shields and quick wins—accretive magic! ✨Not just growth, a vibe shift from IT grunt to AI elite! 🌟 📈 Financial Deep Dive ✨Encora drops $600M FY26 revenue at 19% adjusted EBITDA—juicier than Coforge's profile, blending to 14% EBIT post-intangibles. RPM? A whopping $69K premium model! ✨Guidance Gold: AI/Eng/Data/Cloud hits $2B FY27 revenue. NA surges 50% to $1.4B, conquering West/Midwest tech hubs (from measly 25% exposure). ✨Timeline: 4-6 months to close—regulatory green lights pending. 🎯 Strategic Narrative Unpacked ✨Management's story: Encora's "Human + Agent" + composable AI platform = "Services as Software." Fixes gaps: ✨Verticals: HiTech & Healthcare leap to $170M each instantly. ✨Cross-Sell Rocket: Coforge's BPS/Cloud/ERP floods Encora's 11x $10M+ clients (engineering-only before). 🔥 Hot Seat Q&A Breakdown ⚡Analysts grilled hard: ✨Valuation Clash (Kotak's Kawaljeet): Why premium multiple on 7-10% grower vs Coforge's 20%? CFO Saurabh Goyal: EBITDA justifies + synergies not priced in. Defensive but margin-logical. ✨Amortization Trap: $500M intangibles? Modeled at 12-14yr life ($37-39M/yr hit) on sticky retention—vs standard 7-8yr. Transparent pivot! ✨Unsaid: Culture clash—AI-native vs traditional SI. "Proven template" mentioned, friction dodged. ⚖️ Bull vs Bear Matrix Expanded ⚡Bull Case 💪 ✨PE skin-in-game = ultimate vote; RPM $69K/$74K lifts to premium chain ✨Encora slowdown (16%→8%) = competitive red flag or saturation? ✨$2B FY27 AI revenue + 50% NA jump de-risks geo/exposure 21% equity dilution + $550M debt/QIP reshapes capital—overhang alert!​ ✨Cross-sell 45+ mega-clients + vendor scale crushes headwinds ⚡Bear Case 🐻 ✨Encora slowdown (16%→8%) = competitive red flag or saturation? ✨21% equity dilution + $550M debt/QIP reshapes capital—overhang alert! ✨Amortization cliff: Auditors say 7yr? EPS tanks immediately. Link to the Conference Call Audio Recording:- https://www.coforge.com/hubfs/Coforge... #Coforge #encora #AI #technology #deal #ITSector #DigitalTransformation #TechGrowth #StockMarket #TechStocks #StockMarketIndia #ZinvestZ 🔔Follow @zinvestz for more powerful investing stories & deep-dive analyses!) (Disclaimer: This post is for informational purposes only. DYOR before investing! 📈)