Persistent Systems has agreed to acquire all shares of Germany-based digital engineering firm Nagarro in a deal worth approximately €1.27bn ($1.45bn).
The Indian publicly listed technology company has launched a voluntary public takeover offer at €81 per share in cash. This represents a premium of about 140% to Nagarro’s undisturbed closing share price on 25 June 2026 and roughly 94% to its three-month volume-weighted average price.
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Persistent has already secured an approximately 21% stake in Nagarro through a share purchase agreement with Lantano Beteiligungen, which is the latter’s largest shareholder. The agreement was signed on the day of the announcement and is subject to standard regulatory approvals.
The offer is being made through Galaxy Germany, a Persistent subsidiary, for all outstanding Nagarro shares.
Members of Nagarro’s management board have declared their intention to accept the offer and tender their shares. In addition, Nagarro’s management board and supervisory board support the transaction and intend to recommend that shareholders accept the offer, pending their review of the official offer document.
The proposed acquisition forms part of Persistent’s stated strategy to expand its digital engineering and AI-led transformation capabilities in Europe. The companies have entered into a business combination agreement, aiming to combine and operate as the Persistent × Nagarro Group upon completion.
Pending regulatory approvals and acceptance from shareholders holding at least 50% plus one share of Nagarro, including the stake already secured by Persistent, the transaction can proceed. Completion is expected by either the fourth quarter of 2026 or the first quarter of 2027.
The combined group is anticipated to become the world’s second-largest digital engineering company by revenue and India’s seventh-largest technology services firm.
Persistent has stated the group would achieve an annualised revenue run-rate of over $2.9bn, employing more than 46,000 staff across 40 countries. After the planned completion, North America would contribute over $1.7bn in revenue, Europe more than $600m, and other regions over $400m.
The company projects sector-specific revenues of over $500m each for banking, financial services and insurance, healthcare and life sciences, and technology, media and telecommunications. It expects industrial revenue to be above $400m, consumer revenue at over $300m, and public sector plus education revenue to surpass $100m.
Nagarro employs around 18,500 people in 40 countries and had reported about €1bn in revenue for 2025. Its client relationships span key sectors, such as four of Europe’s five leading automotive manufacturers, as well as a presence among top banks and healthcare firms in Europe and the US.
Persistent, which focuses on AI-led digital engineering and enterprise modernisation, employs over 27,500 people in 21 countries.
The two companies intend to retain their existing brands and combine their strengths in AI engineering, digital transformation, ERP, and customer experience platforms.
Nagarro co-founder and CEO Manas Human said: “Both Nagarro and Persistent have grown from humble beginnings into strong technology powerhouses with high-quality people and deep client relationships.
“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.
“With the combined strengths of Persistent and Nagarro, we’ll be able to deliver the complex intelligence transformation programmes that our clients are increasingly demanding – at scale, across industries, and across the world.”
Persistent has highlighted the highly complementary nature of the transaction, describing the combination as a means to address a global addressable market of over $1.4tn and serve over 350 “marquee” clients. The companies also report a combined partner ecosystem, including hyperscalers, independent software vendors (ISVs), and AI research labs.
Persistent executive director and CEO Sandeep Kalra said: “The next wave of enterprise transformation will be defined by AI, engineering excellence, and global scale. Bringing Nagarro and Persistent together is a defining milestone in our journey to build a global, engineering-led technology services leader.
“Nagarro is an exceptional strategic and cultural fit for Persistent, with shared values, complementary capabilities, and a common commitment to customer success. This combination strengthens our position in Europe, expands our scale in North America, and enhances our ability to help clients accelerate their AI and digital transformation journeys.
“Together, we are creating one of the industry’s leading AI-led, engineering-driven digital transformation companies, creating greater opportunities for our clients, our people, and all our stakeholders.”
As Nagarro is listed in Germany, the transaction is subject to both German and Indian regulatory protocols. The German financial regulator, BaFin, will need to review and approve the formal offer document before Nagarro shareholders can formally respond.
Persistent expects the transaction to be accretive to its cash earnings per share from the first year after completion.
Last month, Persistent entered into a partnership with Kong to help enterprises integrate and govern AI systems as they move from experimentation to production.
