Persistent Systems Announces $1.45 Billion Acquisition of German Digital Engineering Firm Nagarro

Persistent Systems has agreed to acquire all shares of the Germany‑based digital engineering firm Nagarro in a transaction valued at roughly €1.27 billion ($1.45 billion).

The Indian publicly listed technology company has launched a voluntary public takeover offer at €81 per share in cash, representing a premium of approximately 140% over Nagarro’s undisturbed closing share price on 25 June 2026 and about 94% above its three‑month volume‑weighted average price.

Persistent has already secured an approximate 21% stake in Nagarro through a share purchase agreement with Lantano Beteiligungen, the firm’s largest shareholder. The agreement was signed on the announcement day and is subject to standard regulatory approvals.

The offer will be executed through Galaxy Germany, a Persistent subsidiary, for all outstanding Nagarro shares.

Members of Nagarro’s management board have indicated their intention to accept the offer and tender their shares. Moreover, both the management and supervisory boards of Nagarro support the transaction and plan to recommend that shareholders accept the offer, pending review of the official offer document.

The proposed acquisition aligns with Persistent’s strategy to expand its digital engineering and AI‑driven transformation capabilities in Europe. The companies have signed a business combination agreement to operate as the Persistent × Nagarro Group upon completion.

Pending regulatory approvals and acceptance from shareholders holding at least 50% plus one share of Nagarro—including the stake already secured by Persistent—the transaction can proceed. Completion is anticipated for either the fourth quarter of 2026 or the first quarter of 2027.

The combined group is expected to become the world’s second‑largest digital engineering company by revenue and India’s seventh‑largest technology services firm.

Persistent projects that the combined group will achieve an annualised revenue run‑rate exceeding $2.9 billion, employing more than 46,000 staff across 40 countries. Post‑completion, North America is expected to generate over $1.7 billion in revenue, Europe more than $600 million, and other regions over $400 million.

The company projects sector‑specific revenues exceeding $500 million each for banking, financial services and insurance, healthcare and life sciences, and technology, media and telecommunications. It anticipates industrial revenue above $400 million, consumer revenue over $300 million, and public sector and education revenue surpassing $100 million.

Nagarro employs approximately 18,500 people in 40 countries and reported about €1 billion in revenue for 2025. Its client base includes four of Europe’s five leading automotive manufacturers and extends to top banks and healthcare firms in Europe and the United States.

Persistent, which focuses on AI‑led digital engineering and enterprise modernisation, employs over 27,500 people across 21 countries.

The two companies intend to retain their existing brands and combine their strengths in AI engineering, digital transformation, ERP, and customer experience platforms.

Nagarro co‑founder and CEO Manas Human stated: “Both Nagarro and Persistent have grown from humble beginnings into strong technology powerhouses with high‑quality talent and deep client relationships. As the AI revolution unfolds, companies that already possess a digital, data and AI DNA are positioned to benefit. This presents a significant opportunity, though scale and power are required to fully realize it. With the combined strengths of Persistent and Nagarro, we will be able to deliver complex intelligence transformation programmes that our clients increasingly demand — at scale, across industries and worldwide.”

Persistent has highlighted the highly complementary nature of the transaction, stating that the combined entity will address a global addressable market exceeding $1.4 trillion and serve more than 350 marquee clients. The companies also note a combined partner ecosystem that includes hyperscalers, independent software vendors (ISVs) and AI research laboratories.

Persistent executive director and CEO Sandeep Kalra stated: “The next wave of enterprise transformation will be defined by AI, engineering excellence and global scale. Combining Nagarro and Persistent marks a defining milestone in our journey to build a global, engineering‑led technology services leader.”

Nagarro represents an exceptional strategic and cultural fit for Persistent, sharing values, complementary capabilities and a commitment to customer success. This combination strengthens its position in Europe, expands its scale in North America and enhances its ability to help clients accelerate AI and digital transformation journeys.

Together, we are creating one of the industry’s leading AI‑led, engineering‑driven digital transformation companies, generating greater opportunities for our clients, our people and all stakeholders.

As Nagarro is listed in Germany, the transaction is subject to both German and Indian regulatory protocols. The German financial regulator, BaFin, must review and approve the formal offer document before Nagarro shareholders can formally respond.

Persistent expects the transaction to be accretive to its cash earnings per share from the first year after completion.

Last month, Persistent entered into a partnership with Kong to assist enterprises in integrating and governing AI systems as they transition from experimentation to production.

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