Persistent Systems, an Indian IT services firm, has revealed plans for a significant acquisition by offering to purchase all outstanding shares of German digital engineering company Nagarro SE at €81 per share in cash. The acquisition, facilitated through Persistent Systems’ subsidiary Galaxy Germany Holding, comes after the two companies signed a business combination agreement.
Nagarro’s management and supervisory board are in favor of the acquisition and are likely to recommend Nagarro shareholders to accept the offer, pending their review of the offer document. Additionally, Nagarro’s largest shareholder, Lantano Beteiligungen GmbH, has agreed to tender its entire 21% stake to the bidder.
According to Sandeep Kalra, Executive Director and CEO of Persistent Systems, this move will enhance the Indian company’s presence in Europe and bolster its operations in North America. Kalra emphasized that the collaboration with Nagarro aligns strategically and culturally, offering shared values, complementary capabilities, and a mutual dedication to customer success.
The deal values Nagarro at a 140% premium over its undisturbed closing price on June 25 and a 94% premium over its three-month volume-weighted average price. The acquisition is anticipated to conclude by either the fourth quarter of calendar year 2026 or the first quarter of calendar year 2027, subject to regulatory approvals and the clearance of the offer document by Germany’s financial regulator BaFin.
The proposed merger aims to establish a globally diversified AI-led digital engineering and enterprise modernization powerhouse with a strong presence in North America and Europe. The combined Persistent-Nagarro entity is expected to better serve multi-region enterprise clients seeking integrated AI, engineering, ERP/CX, data, and cloud capabilities across local and global delivery models.
