Persistent Systems has announced its biggest overseas acquisition by making a voluntary public takeover offer to buy all outstanding shares of Nagarro SE through its subsidiary, Galaxy Germany Holding. The company has offered €81 per share in cash, which is about 140% higher than Nagarro’s closing share price on June 25 and 94% above its three-month average trading price.
The deal is expected to be completed by the fourth quarter of 2026 or the first quarter of 2027, subject to regulatory approvals and shareholder acceptance. Nagarro’s biggest shareholder, Lantano Beteiligungen GmbH, has agreed to sell its entire 21% stake, while Nagarro’s management and supervisory boards have also supported the offer and are expected to recommend that shareholders accept it.
After the acquisition, the combined company will have annual revenue of around $2.9 billion and a workforce of more than 46,000 employees across more than 40 countries. The deal will significantly strengthen Persistent’s presence in Europe, while North America will continue to contribute around 62% of total revenue.
The combined company will also have a larger customer base, stronger capabilities in AI, digital engineering, ERP, cloud, and customer experience, and access to a total addressable market of more than $1.4 trillion. Persistent’s Chairman and Managing Director, Dr Anand Deshpande, and CEO Sandeep Kalra said Nagarro is a strong strategic and cultural fit, with similar values and engineering expertise, and that the merger will help customers accelerate their AI and digital transformation. Nagarro CEO Manas Human said the partnership will give both companies the scale needed to benefit from the growing AI revolution.
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The acquisition will be financed through committed funding from Barclays. After the transaction, Persistent plans to delist Nagarro from the Frankfurt Stock Exchange and expects the deal to increase its earnings per share in the first year after completion.
