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CompaniesJas Bardia
3 min
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04 Mar 2025, 10:34 PM
ISTCoforge provides Digital Solutions to enable businesses to thrive in the digital age.SummaryThe deal size implies that the Noida-based IT services provider is expected to get $120 million on an average every year from Sabre, making it the company’s biggest deal. This contract also marks a rare instance of a mid-cap IT company getting a mega deal, one that is valued in excess of $1 billion.
Coforge Ltd on Tuesday said it has struck a mega 13-year deal worth $1.56 billion with Sabre Corp., a Southlake, Texas-based travel technology company. As part of the deal, Coforge will handle the software product delivery for Sabre and will also execute artificial intelligence-led tasks for the travel technology company.
The deal size implies that the Noida-based information technology (IT) services provider is expected to get $120 million on an average every year from Sabre, making it the company’s biggest deal.
This contract also marks a rare instance of a mid-cap IT company getting a mega deal, one that is valued in excess of $1 billion.
“Both Sabre and Coforge share a similar DNA as technology firms with a strong focus on cutting-edge engineering solutions, customers and the travel industry,” Sudhir Singh, chief executive of Coforge, said in a statement.This deal comes at a time when even the country’s largest software services companies, including Infosys Ltd, HCL Technologies Ltd, Wipro Ltd, and Tech Mahindra Ltd have been struggling to secure big-ticket deals.
Mumbai-based Tata Consultancy Services Ltd was the last of the country’s top five software service providers to land a mega deal, when it signed a 15-year deal worth $2.5 billion last year with Aviva, a British insurance company.Revenue boostCoforge got almost a fifth, or $201 million of its FY24 revenue of $1.12 billion from clients in the travel, transportation, and hospitality sector. Its revenue from the sector is expected to increase by 60% with the latest deal.
Its revenue from the Americas, the company’s largest market, fetched about 48%, or $537 million of its business as of the year ended March 2024. With this deal, its revenue from that geography is expected to rise further.
“This is Coforge’s largest deal. It tells you that some of these mid-cap guys are able to carve out large transactions and convince customers to give them business as against the larger players,” said a Mumbai-based analyst working at a domestic brokerage, on the condition of anonymity.“Coforge might have taken over certain workforce from Sabre as well,” said the Mumbai-based analyst.
Mega deals play a crucial role for IT companies as they guarantee a fixed amount of revenue every year.Inorganic expansion strategyThe country’s seventh-largest IT services company completed the acquisition of Cigniti, a software testing services firm, in December last year.
