CORPORATE
Persistent to acquire Germany’s Nagarro through a public offer to scale up AI services
- IBJ Bureau
- Jun 28, 2026
Persistent Systems has said that it has signed a business combination agreement with Nagarro and will launch a voluntary public takeover offer, valuing the Munich, Germany-based digital engineering firm at a steep premium.
Persistent’s deal comes at a time when Indian IT services companies are stepping up consolidation to build scale in artificial intelligence (AI)-led services.
Persistent, through its wholly-owned unit, Galaxy Germany Holding, will offer 81 euros in cash for each Nagarro share, representing a premium of about 140 per cent to Nagarro’s closing price on June 25 and around 94 per cent to its three-month, volume-weighted average price, the companies have said in a joint statement.
Nagarro’s management and supervisory boards have said that they support the deal and intend to recommend that shareholders accept the offer, subject to review of the formal offer document.
Persistent has already secured roughly 21 per cent of Nagarro’s shares after entering into a binding agreement with Nagarro’s largest shareholder, Lantano Beteiligungen, to acquire its entire stake at the offer price.
Members of Nagarro’s management board have also said that they plan to tender their shares.
If completed, the transaction will create a combined Persistent-Nagarro group with about $2.9 billion in annual revenue and more than 46,000 employees across over 40 countries.
The deal will also strengthen Persistent’s presence in Europe, while expanding scale in North America.
“The next wave of enterprise transformation will be defined by AI, engineering excellence and global scale,” Persistent Chief Executive Officer Sandeep Kalra has said, adding that the combination will enhance the group’s ability to support global clients.
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