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Persistent Systems announced its biggest acquisition to date, signing a business combination agreement to acquire Germany-based digital engineering firm Nagarro. This is an all-cash deal valued at nearly $1.3 billion. The transaction ranks among the largest overseas acquisitions by an Indian IT services company. It highlights Persistent's ambition to become a global AI-led engineering leader.
The company has offered €81 per share for all outstanding Nagarro shares. The offer carries a premium of about 140% over Nagarro's undisturbed closing price on June 25 and around 94% over its three-month volume-weighted average price.
The acquisition will leverage the artificial intelligence, cloud computing, and software engineering capabilities of Persistent and the digital engineering, enterprise resource planning, and customer experience capabilities of Nagarro. The Persistent-Nagarro Group is anticipated to have revenues in excess of $2.8 billion annually and over 46,000 employees in more than 40 countries.
This acquisition will also help Persistent to increase its presence in Europe significantly. Currently, Europe accounts for 9% of Persistent's revenues; after the acquisition, this figure should rise to 22%.
Experts suggest that the acquisition is a strategic move into the domain of business transformation through artificial intelligence. Nagarro is equipped with excellent expertise in areas of AI, digital engineering, ERP, cloud computing, and customer experience, having solid ties in manufacturing, banking, health care, telecom, and consumer segments.
Persistent has already secured the commitment of Nagarro's largest shareholder, which has a shareholding of almost 21% in the company. For the takeover proposal, the acceptance of at least 51% of Nagarro's shares from the stockholders, along with the regulatory approval of Germany's BaFin, would be necessary for its successful completion. The deal is expected to be closed during Q4 2026 or Q1 2027.
After the deal, Persistent is going to move forward with the delisting of Nagarro from the Frankfurt Stock Exchange. Together, the companies will serve more than 350 enterprise clients and target a total addressable market exceeding $1.4 trillion.
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