Coforge shares jump 6% following two acquisitions, signing a $1.6 bn deal, 1:5 stock split

Shares of Coforge have gained around 15 percent over the past year.

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26 Aug, 2025 12:21

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Shares of IT player Coforge surged over six percent in early trade on March 5 after announcing two acquisitions, a fresh agreement, and a stock split.

At 9.20 am, Coforge shares were quoting Rs 7,658.60 on the NSE, up 6.2 percent compared to the previous close.

Coforge signed a 13-year product delivery and artificial intelligence (AI) solutions deal worth $1.56 billion with US-based travel technology firm Sabre Technologies.  "This multi-year agreement positions Coforge as a key partner in furthering Sabre’s ability to accelerate product delivery and launch additional innovative AI-enabled solutions, further underscoring the company’s commitment to speed and scale," the company said in a release.

Further, Coforge is set to acquire TMLabs by purchasing all outstanding shares under a share sale agreement. Coforge will acquire TMLabs for an upfront payment of 20 million Australian Dollars, along with an unspecified earnout linked to revenue and EBITDA milestones for FY26 and FY27. TMLabs primarily operates in Australia, offering implementation services for the "ServiceNow" platform.

For its acquisition of Rythmos, Coforge will pay an upfront $30 million, with an additional earnout of up to $18.7 million based on revenue and EBITDA targets for 2025 and 2026. Rythmos specializes in data capabilities and has expertise in the airline sector, which Coforge sees as an opportunity to strengthen its data and cloud engineering services.

Both deals are subject to standard closing conditions, Coforge stated in a regulatory filing.

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Additionally, Coforge’s board has approved a stock split, dividing each Rs 10 equity share into five shares of Rs 2 each. This marks the company's first stock split, pending shareholder approval. The record date will be announced later, with the entire process expected to be completed in about three months.

Meanwhile, Jefferies has maintained a 'buy' rating on Coforge, raising its target price to Rs 10,350. The brokerage noted that the company's $1.6 billion deal signing enhances revenue visibility for FY26, strengthens its travel vertical presence, and positions it for more large contracts. Jefferies also increased its FY26-FY27 earnings estimates by 3 percent to 5 percent.

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