Persistent Systems to acquire German digital engineering firm Nagarro
New Delhi, June 27
In one of the largest overseas acquisitions by an Indian IT services firm, Persistent Systems on Saturday announced a voluntary public takeover offer to acquire all outstanding shares of German digital engineering firm Nagarro SE at €81 per share in cash.
The offer is being made through the IT company's arm -- Galaxy Germany Holding -- and follows the signing of a business combination agreement between the two companies, the release from Persistent Systems showed.
Nagarro's management and supervisory board support the transaction and intend to recommend acceptance of the Offer to Nagarro shareholders, subject to their review of the offer document, it added.
Further, Nagarro's largest shareholder -- Lantano Beteiligungen GmbH -- has agreed to tender its entire 21 per cent stake for the bidder.
This combination will strengthen the Indian company's position in Europe and expand its scale in North America, according to Sandeep Kalra, Executive Director and Chief Executive Officer, Persistent Systems.
"The next wave of enterprise transformation will be defined by AI, engineering excellence, and global scale. Nagarro is an exceptional strategic and cultural fit for Persistent, with shared values, complementary capabilities, and a common commitment to customer success," Kalra said.
"It enhances our ability to help clients accelerate their AI and digital transformation journeys," he added.
The deal, which values Nagarro at a 140 per cent premium to its undisturbed closing price on June 25 and a 94 per cent premium to its three‑month volume‑weighted average price is expected to close by Q4 CY26 or Q1 CY27.
The offer is subject to a minimum acceptance threshold of 50 per cent plus one share, regulatory approvals and clearance of the offer document by Germany's financial regulator BaFin.
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 global exposure, according to the company.
The combined Persistent-Nagarro group would be better positioned to support multi-region enterprise clients requiring integrated AI, engineering, ERP/CX, data and cloud capabilities across local and global delivery models.
— IANS
Reader Comments
Finally, Indian IT firms are taking big bets in Europe! However, I do hope Persistent has done its homework—€81 per share at a 94% premium to three-month average is risky. But if the cultural fit is as good as Sandeep Kalra says, this could be a powerhouse for AI-driven engineering. Fingers crossed for shareholders 🤞
Brilliant acquisition! Nagarro's expertise in digital engineering combined with Persistent's delivery scale will be lethal for clients in North America and Europe. This is exactly the kind of bold step needed to challenge Accenture and TCS at the high end.
As someone working in IT for 15 years, I've seen Indian firms grow from body-shopping to genuine global players. This acquisition is a testament to Persistent's ambition. But I wonder how they'll manage integration—merging two different work cultures is always tricky. Hope they keep Nagarro's talent intact.
Impressive valuation! ₹81 per share is healthy, but I hope this isn't another case of overpaying for acquisition like some past deals. That said, the German regulator BaFin will keep things transparent. Go Persistent! 🇮🇳
This is the kind of strategic acquisition India needs—buying companies in high-value engineering, not just cheap IT services. Persistent Systems CEO is spot on about AI and digital transformation being the next wave. But I hope they don't lose their Indian identity in the process. A win for 'Make in India' though. 🚀
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