Persistent Systems has signed a business combination agreement with Nagarro, a global AI transformation and engineering leader based out of Germany, marking one of the biggest cross-border acquisitions by an Indian IT services company.
As part of the transaction, Persistent will launch a voluntary public takeover offer to acquire all outstanding shares of Nagarro at €81 per share, valuing the deal at a significant premium and paving the way for the creation of a $2.9 billion AI-led digital engineering group with more than 46,000 employees across over 40 countries.
The all-cash offer represents a premium of around 140% over Nagarro’s undisturbed closing share price on June 25, 2026, and about 94% above its three-month volume-weighted average price. Persistent has already secured an approximately 21% stake in Nagarro through a binding agreement with the German company’s largest shareholder, while Nagarro’s Management and Supervisory Boards have backed the transaction and intend to recommend shareholders accept the offer, subject to reviewing the offer document.
Combination to strengthen AI and global delivery capabilities
The combined Persistent-Nagarro group is expected to have an annual revenue run rate of about $2.9 billion, with operations spanning North America, Europe and other international markets. Persistent said the merger combines its strengths in AI-led engineering, North American scale and ecosystem partnerships with Nagarro’s strong European presence, AI expertise, ERP and customer experience capabilities.
The company said the combination would significantly expand its addressable market, deepen its presence in banking, healthcare, technology, industrial and consumer sectors, and strengthen relationships with more than 350 marquee clients worldwide.
Similar engineering cultures and long-term values
Persistent Systems Founder Chairman and Managing Director Dr Anand Deshpande said the two companies share similar engineering cultures and long-term values, adding that AI is reshaping the technology services industry at an unprecedented pace.
“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 Systems Executive Director and CEO Sandeep Kalra said the combination marks a defining milestone in the company’s ambition to become a global engineering-led technology services leader.
“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.”
Nagarro Co-Founder and CEO Manas Human said the AI revolution makes scale increasingly important for technology companies.
“With the combined strengths of Persistent and Nagarro, we’ll be able to deliver the complex intelligence transformation programs that our clients are increasingly demanding – at scale, across industries, and across the world.”
Transaction expected to close by early 2027
Persistent said the offer is subject to a minimum acceptance threshold of 50% plus one share, regulatory approvals and approval of the offer document by Germany’s financial regulator BaFin. The company expects the transaction to close in Q4 CY2026 or Q1 CY2027.
Following completion, Persistent intends to pursue the delisting of Nagarro shares from the Frankfurt Stock Exchange’s Prime Standard segment, while confirming it does not plan to enter into a domination and profit and loss transfer agreement for two years after closing. The acquisition will be financed through committed funding from Barclays.