IT solutions and AI-engineering services firm, Coforge on Thursday has closed its acquisition of Hyderabad-based software testing company, Cigniti Technologies. The closure was announced after shareholder approval, clearance from the National Company Law Tribunal (NCLT), and completing all regulatory permissions including CCI and SEBI mandates. 

“Coforge acquired Cigniti to gain access to its tenured relationships, expand its Healthcare business, and grow its presence in the Midwest and Western regions of the US. The results are now reflected in the data,” a statement from the Coforge stated. 

The statement also shared that prior to the acquisition, Cigniti’s top two accounts had generated annual revenues of approximately $15 million and $10 million, which after the acquisition have scaled to approximately $45 million and $30 million, respectively, demonstrating a significant increase in client scale and deal size. 

“Our successful integration of Cigniti has unlocked immense value and serves as the strategic blueprint for our next phase. By applying that same disciplined playbook to Encora, we are making a bold bet on AI-native engineering to accelerate our global growth,” said Sudhir Singh, chief executive officer and executive director of Coforge. He also called the Cigniti acquisition a “textbook example of a firm making a contrarian bet” that has delivered great results. 

“The fact that the EBITDA margin of the acquired business has expanded from 11% to 19% in just six quarters, and that the top two acquired clients, which had a cumulative revenue of $25 million per annum, are now running at $75 million per annum, is reflective of both the value creation and the execution intensity that helped drive that value creation,” Singh noted. 

Cigniti Technologies, a quality engineering, software testing, and digital assurance company will combine with Coforge to make a new $2.5 billion firm, the statement said.

Just a week ago, Coforge secured approvals for its acquisition of US- based digital engineering firm Encora. It had bought the firm for around $2.35 billion in December last year.