Persistent and Nagarro sign Business Combination Agreement to form the Persistent - Nagarro Group, a global leader in AI-led digital engineering

Persistent Systems Limited has announced a voluntary public takeover offer for all outstanding shares of Nagarro SE at a price of EUR 81 per share, valuing the transaction at approximately $81 million. This offer represents a significant premium of about 140% over Nagarro's undisturbed closing price on June 25, 2026, and approximately 94% above its three-month volume-weighted average price. The deal has garnered the backing of Nagarro's Management and Supervisory Boards, who intend to recommend acceptance of the offer to shareholders. The acquisition is expected to create a combined entity with a valuation of around $2.9 billion, focusing on AI-led engineering solutions.

Nagarro, headquartered in Munich, is a prominent player in the digital engineering sector, employing around 18,500 individuals across more than 40 countries. The company reported total revenues of EUR 1 billion for the calendar year 2025 and has established a strong presence in various verticals, including industrial, consumer, technology, media, telecommunications (TMT), and banking, financial services, and insurance (BFSI). Persistent Systems, based in Pune, India, has already secured approximately 21% of Nagarro's shares through a binding agreement with Lantano Beteiligungen GmbH, the largest shareholder of Nagarro, who has committed to selling its entire stake.

The strategic rationale behind the acquisition lies in the complementary strengths of both companies. Persistent's expertise in AI-led engineering and its established footprint in North America align well with Nagarro's European market presence and its capabilities in enterprise resource planning (ERP) and customer experience (CX) delivery. The merger aims to create a diversified digital engineering powerhouse that can better serve multi-region enterprise clients, enhancing their ability to integrate AI, engineering, data, and cloud solutions across various delivery models.

The transaction is subject to a minimum acceptance threshold of 50% plus one share of all outstanding Nagarro shares, with the launch of the offer pending regulatory approval from BaFin, the German Federal Financial Supervisory Authority. Persistent has indicated that it does not intend to enter into a domination and/or profit and loss transfer agreement (DPLTA) for two years following the deal's closure. Furthermore, Persistent plans to pursue the delisting of Nagarro shares from the Frankfurt Stock Exchange's regulated market as soon as legally feasible.

This acquisition reflects broader trends in the technology sector, where companies are increasingly seeking to consolidate their capabilities to navigate the rapidly evolving landscape driven by AI and digital transformation. The combination of Persistent and Nagarro is expected to enhance their competitive positioning in the global market, allowing them to leverage their combined resources to address the growing demand for integrated technology solutions. As the industry continues to evolve, this merger could set a precedent for future consolidations aimed at achieving greater scale and innovation in the technology services sector.