Persistent Systems, headquartered in Pune, India, announced its intent to acquire Nagarro, a Munich-based digital engineering company, through a voluntary public takeover offer. The deal values Nagarro at approximately $1.34 billion (€1.1 billion or ₹11,820 crore). The acquisition will be carried out by Persistent Systems and its wholly-owned subsidiary, Galaxy Germany Holding SE. Persistent plans to offer €81 per Nagarro share in cash, representing a substantial premium of about 140% over Nagarro's closing share price before the announcement and 94% over the three-month volume-weighted average price.
This acquisition is driven by Persistent's ambition to build a global AI powerhouse, combining strengths in AI, digital engineering, cloud, enterprise modernization, ERP, and customer experience. Once completed, the combined entity, to be known as the Persistent-Nagarro Group, is projected to become one of the world’s largest AI-led digital engineering companies, with nearly $2.9 billion in annual revenue and more than 46,000 employees across over 40 countries. This would significantly enhance Persistent’s European revenue share from 9% to 22% and increase its total addressable market to over $1.4 trillion.
The transaction is expected to be cash EPS accretive for Persistent shareholders in the first year. Persistent will fund the acquisition with committed financing from Barclays. They have already secured an approximately 21% stake in Nagarro through a binding agreement with Lantano Beteiligungen GmbH, Nagarro's largest shareholder, and Nagarro's management board members also intend to tender their shares. The offer is subject to regulatory approvals, including approval from the German financial regulator (BaFin), and a minimum acceptance threshold of 50% plus one share. Persistent intends to delist Nagarro from the Frankfurt Stock Exchange after the acquisition, which is anticipated to close in Q4 CY26 or Q1 CY27.
