Persistent to Acquire Nagarro, Signs Business Combination Agreement

In one of the largest overseas acquisitions by an Indian IT services company, Persistent Systems has signed a Business Combination Agreement (BCA) with Germany-based digital engineering firm Nagarro.

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The proposed transaction aims to create the Persistent–Nagarro Group, a global AI-led digital engineering company with approximately $2.9 billion in annualized revenue and a workforce of more than 46,000 employees.

As part of the agreement, Persistent, through its wholly owned subsidiary Galaxy Germany Holding SE, will launch a voluntary public takeover offer for all outstanding Nagarro shares at EUR 81 per share in cash.

The offer represents a premium of around 140% over Nagarro’s unaffected closing share price on June 25, 2026, and about 94% over its three-month volume-weighted average price.

The agreement also includes the acquisition of a 21% stake in Nagarro from its largest shareholder, subject to customary closing conditions and regulatory approvals.

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Nagarro’s Management Board and Supervisory Board have unanimously supported the transaction and recommended that shareholders accept the offer.

Focus on AI and Digital Engineering

The combined company will strengthen its capabilities in artificial intelligence, cloud, enterprise platforms, data engineering, cybersecurity, and software product development.

Persistent said the merger will enhance its ability to serve global enterprises with end-to-end digital transformation services while expanding its geographic presence across North America, Europe, Asia-Pacific, and other key markets.

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The companies expect the combined organization to benefit from complementary customer portfolios, deeper engineering talent, and greater scale to compete with global technology services providers in the rapidly growing AI market.

Regulatory Approvals Pending

The transaction remains subject to regulatory approvals and other customary closing conditions.

If completed, the merger is expected to close during late 2026 or early 2027. Until then, Persistent and Nagarro will continue operating as independent companies.

The proposed combination marks a significant milestone for Persistent Systems as it pursues global expansion and strengthens its position in AI-led digital engineering, while offering Nagarro shareholders a substantial premium and the opportunity to participate in the next phase of growth through the combined organization.

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