Persistent Systems To Buy German Digital Engineering Firm Nagarro; Aims To Generate $2.9 Bn In Revenue

The Pune-headquartered tech company on June 27 announced a voluntary public takeover to acquire all outstanding shares of German digital engineering firm Nagarro SE via its subsidiary Galaxy Germany Holding for €81 per share in cash.

The offer represents 140% premium to Nagarro's undisturbed closing share price on June 25 and a 94% premium to its three-month volume-weighted average price.

The deal is expected to close by Q4CY26 or Q1CY27.

Persistent has already secured the backing of Nagarro's largest shareholder, Lantano Beteiligungen GmbH, which has agreed to tender its entire 21% stake in the company.

Nagarro's management and supervisory boards have backed the transaction and intend to recommend shareholders accept the offer, which is subject to reviewing the final offer document.

The proposed acquisition will combine Persistent's AI-led engineering and cloud capabilities with Nagarro's European digital engineering, ERP and customer experience expertise, creating a company with an annual revenue run rate of around $2.9 billion and a workforce of more than 46,000 employees across over 40 countries.

For Persistent, the acquisition solidifies its European presence. Post-transaction, Europe will account for about 22 percent of the combined company's revenue, up from 9 percent currently, while North America will continue to contribute around 62 percent.As a combined group, they will have an expanded total Addressable Market (TAM) to over $1,400 billion, across 350 plus client relationships.

What the leadership said

Dr. Anand Deshpande, Founder, Chairman and Managing Director, Persistent Systems said, “When we got to know Nagarro, what stood out was not just the quality of their business, but the similarity of their values. We saw the same respect for engineering, the same entrepreneurial spirit, and the same commitment to building lasting client relationships," he said.

"That shared foundation gives us confidence that together we can create something even stronger. AI is reshaping our 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,” he added.

Also Read: West Asia Peace Deal Halves India Inc Profit Drop to 100 Bps: Crisil

"Nagarro is an exceptional strategic and cultural fit for Persistent, with shared values, complementary capabilities, and a common commitment to customer success," Persistent CEO Sandeep Kalra said.

Further he noted that the combination strengthens Persistent’s position in Europe, expands its scale in North America, and enhances the company’s ability to help clients accelerate their AI and digital transformation journeys.

“Both Nagarro and Persistent have grown from humble beginnings into strong technology powerhouses with high-quality people and deep client relationships,” said Manas Human, Co-Founder and CEO, Nagarro, adding, “Now, with the AI revolution, we are entering an era that will reward companies like ours that already have a digital-, data- and AI-DNA. It's a moment of great opportunity, but it also needs scale and power to make the most of it.”