Indian IT leader Persistent Systems has announced a major move to acquire Germany’s digital engineering firm, Nagarro SE. This historic takeover will create a massive AI-led digital engineering giant. The newly combined business is expected to generate a stunning $2.9 billion in annualised revenue.
Through its subsidiary, Galaxy Germany Holding, Persistent is launching a voluntary public takeover offer for Nagarro at €81 per share in cash, valuing the firm at approximately €1.1 billion. This offer includes a significant 140% premium over Nagarro’s closing price on June 25, 2026, and has already secured a 21% stake from major shareholder Lantano Beteiligungen. The transaction, supported by Nagarro’s boards, combines the strengths of both companies.
The combined entity will feature a workforce of over 46,000 employees across 40 countries, blending Persistent’s North American presence with Nagarro’s European network. This integration is projected to increase Persistent’s European revenue share from 9% to 22%. The merger unites expertise in AI-driven engineering, cloud capabilities, and enterprise software to provide comprehensive, end-to-end AI solutions for global clients.
Also Read: Square Yards Turns Unicorn With Rs 900 Cr Raise
Financed by Barclays, the deal is expected to be accretive to earnings per share within the first year. The acquisition is anticipated to close by late 2026 or early 2027, subject to regulatory approvals, including clearance from Germany’s BaFin. Post-closing, Persistent plans to delist Nagarro from the Frankfurt Stock Exchange.
