New Delhi, Persistent Systems on Saturday said it will takeover German digital engineering company Nagarro, a move that will create a global AI-led digital engineering powerhouse with USD 2.9 billion in revenue run-rate.
Persistent and Nagarro are a “perfect strategic fit”, combining Persistent’s AI-led engineering leadership, North American scale and partnership depth with Nagarro’s European business, complementary verticals, AI expertise, and ERP and CX (customer experience) delivery, according to a release.
The combination would be a USD 2.9 billion AI-led engineering juggernaut with 46,000 plus employees in more than 40 countries, including about 37,000 in India, nearly 3,500 in North America, and around 3,000 in Europe, the release said.
“Galaxy Germany Holding SE, a wholly-owned direct subsidiary of Persistent Systems Limited, today announced a voluntary public takeover offer for all outstanding shares in Nagarro SE at a cash consideration of EUR 81 per share,” it said.
The offer follows the signing of a Business Combination Agreement, it said.
Nagarro’s management and supervisory board support the transaction and intend to recommend acceptance of the offer to their shareholders, subject to their review of the offer document.
Galaxy Germany has also entered into a fully binding share purchase agreement with Lantano Beteiligungen, the investment vehicle of the largest shareholder of Nagarro – under this, Lantano has agreed to sell its entire approximately 21 per cent stake in Nagarro to Galaxy Germany at the offer price.
“The proposed combination is designed to create a scaled, globally diversified AI-led digital engineering and enterprise modernisation powerhouse with at-scale presence in North America and Europe and meaningful rest of the world exposure,” the release said.
The combined Persistent-Nagarro group would be better positioned to support multi-region enterprise clients requiring integrated AI, engineering, enterprise resource planning/ CX, data and cloud capabilities across local and global delivery models, the release said.
The all-cash offer is a premium of about 140 per cent to the closing price on June 25, 2026, and about 94 per cent to the three-month volume-weighted average price.
Persistent will fund the transaction with committed financing from Barclays. Following the transaction, the leverage is expected to remain within conservative limits to meaningfully reduce over a two-year period, the company said.
Nagarro is a Munich-headquartered leader in digital engineering with about 18,500 employees across 40-plus countries, deep roots in industrial, consumer, TMT and BFSI verticals and a total revenue of EUR 1 billion (CY25).
Persistent intends to pursue a delisting of Nagarro shares from the regulated market of the Frankfurt Stock Exchange “as soon as practicable and legally feasible”.
Anand Deshpande, Founder, Chairman and Managing Director of Persistent Systems, said AI is reshaping the industry at an unprecedented pace.
“Success will belong to companies that combine deep technical capability with global reach, while continuing to attract, develop and inspire exceptional people.
“Together, Persistent and Nagarro will be better positioned to help our clients navigate this new era, create greater opportunities for our teams, and build an organisation that will endure for many years to come,” Deshpande said.
Persistent believes the offer price represents the full and fair value for Nagarro shareholders. At the same time, the transaction is expected to be cash EPS accretive for Persistent shareholders in the first year of the transaction.
The two businesses are “highly complementary” creating a larger, more diversified platform with enhanced growth prospects, the release added.
Combination significantly enhances the total addressable market (TAM) to over USD 1,400 billion, with at-scale presence (USD 500 million plus combined revenue) across each of Banking, Financial Services and Insurance (BFSI), Healthcare and Life Sciences (HLS), and Technology, Media and Telecommunications (TMT), and strong positions across Industrial (USD 400 million) and Consumer (USD 300 million), it further said. PTI
