Coforge and Cigniti Announce Merger Deal

Coforge Limited and Cigniti Technologies have announced an agreement to merge, confirming previous reports. The merger, subject to approval by the national company law tribunal, will see Coforge absorbing Cigniti in a share swap arrangement where Cigniti shareholders receive one equity share of Coforge for every five shares of Cigniti they own. The merger, approved by Coforge’s board and supported by recommendations from its audit committee and independent directors, will consolidate Cigniti’s operations into those of Coforge. Coforge has notably doubled its market capitalization to over Rs. 62,000 crore in the last seven months, while Cigniti stands at Rs. 5,000 crore. Merger terms are to be prepared by EY and Axis Capital. Coforge recently acquired a majority stake in Cigniti, raising Rs. 2,240 crore via a qualified institutional placement to finance the acquisition. The companies highlight significant geographic synergies between their client bases in North America as a key merger advantage. Formerly known as NIIT Technologies, Coforge was majority-owned by Baring Private Equity before divesting its stake in 2022. Under CEO Sudhir Singh, Coforge seeks to leverage AI to further its growth trajectory.