AI-led digital engineering deal: Persistent Systems to acquire Nagarro in EUR 81-per-share offer

Persistent Systems said on Saturday that it will takeover German digital engineering firm Nagarro. The deal is expected to form a larger AI-led digital engineering group. The companies said the combined business has a USD 2.9 billion revenue run-rate. The group is also projected to have more than 46,000 employees across over 40 countries.

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Galaxy Germany Holding SE, a wholly-owned direct subsidiary of Persistent Systems Limited, announced a voluntary public takeover offer. The offer covers all outstanding shares in Nagarro SE. Galaxy Germany offered EUR 81 per share in cash. The takeover bid followed the signing of a Business Combination Agreement.

Persistent Systems Nagarro takeover offer and shareholder support

Nagarro’s management and supervisory board supported the transaction. The boards also intended to recommend acceptance to shareholders. This depended on a review of the offer document. Galaxy Germany also signed a binding share purchase deal with Lantano Beteiligungen. Lantano is the investment vehicle of Nagarro’s largest shareholder.

Under that agreement, Lantano agreed to sell its entire stake to Galaxy Germany. The holding is approximately 21 per cent of Nagarro. The sale price matched the offer price. The all-cash offer represents a premium of about 140 per cent. This was compared with the closing price on June 25, 2026.

The company also cited a premium of about 94 per cent. This was versus the three-month volume-weighted average price. Persistent said it will fund the transaction with committed financing from Barclays. After the transaction, leverage is expected to stay within conservative limits. The company also said leverage should reduce meaningfully over two years.

Persistent Systems Nagarro combined scale, regions and workforce

The release said the combined group would employ 46,000 plus people in more than 40 countries. It included about 37,000 employees in India. It also included nearly 3,500 staff in North America. Around 3,000 employees were expected to be in Europe, according to the release.

The companies said the pairing is a strategic fit across regions and services. Persistent brings AI-led engineering leadership and North American scale. It also adds partnership depth, the release said. Nagarro contributes European business strength and complementary verticals. The release also cited AI expertise, plus ERP and CX customer experience delivery.

Persistent Systems Nagarro deal rationale for clients and services

The proposed combination is designed to create a scaled and globally diversified AI-led platform. It also aims to strengthen enterprise modernisation work. The release said the business would have at-scale presence in North America and Europe. It would also have meaningful rest of the world exposure.

The release said the group would be better placed to serve multi-region enterprise clients. These clients often need integrated AI and engineering support. They also require enterprise resource planning and CX services. The release also pointed to data and cloud capabilities. Delivery would span both local and global models.

Persistent Systems Nagarro business profile and market opportunity

Nagarro is headquartered in Munich and focuses on digital engineering. The company has about 18,500 employees across 40-plus countries. The release said it has roots in industrial and consumer work. It also operates in TMT and BFSI verticals. Nagarro reported total revenue of EUR 1 billion CY25.

Persistent said it intends to pursue delisting of Nagarro shares. The plan involves the regulated market of the Frankfurt Stock Exchange. The company said this would happen as soon as practicable. It also said it would proceed when legally feasible. No timeline was provided in the release.

Anand Deshpande, Founder, Chairman and Managing Director of Persistent Systems, said "AI is reshaping the industry at an unprecedented pace.\" Deshpande also said, \"Success will belong to companies that combine deep technical capability with global reach, while continuing to attract, develop and inspire exceptional people.\" Deshpande added, \"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,\"

Persistent said it believes EUR 81 per share reflects full and fair value. The company also said the deal should be cash EPS accretive in year one. It added that the businesses are complementary and more diversified together. The release said the combination lifts TAM to over USD 1,400 billion. It also cited USD 500 million plus combined revenue in each of BFSI, HLS, and TMT.

The release also described revenue strength in other segments. It cited Industrial at USD 400 million. It also cited Consumer at USD 300 million. Persistent said these positions support enhanced growth prospects. The company has not yet detailed integration steps. The next stage depends on shareholder responses and required processes.

With inputs from PTI