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 its intention to launch 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 cash offer represents a significant premium of around 140% over Nagarro's undisturbed closing price as of June 25, 2026, and approximately 94% over its three-month volume-weighted average price. The deal is supported by Nagarro's Management and Supervisory Board, who intend to recommend acceptance of the offer to shareholders.

Persistent Systems, headquartered in Pune, India, is a global leader in AI-led digital engineering and has established a strong presence in North America. Nagarro, based in Munich, Germany, is recognized for its expertise in digital engineering, boasting around 18,500 employees across more than 40 countries and generating total revenue of EUR 1 billion in the calendar year 2025. The strategic rationale behind this acquisition lies in the complementary strengths of both companies, which will create a combined entity valued at approximately $2.9 billion. This merger aims to leverage Persistent's AI capabilities and North American scale alongside Nagarro's European operations and industry expertise.

The transaction is designed to enhance the capabilities of the combined entity, positioning it as a formidable player in the AI-led engineering sector. By merging Persistent's strengths in AI and engineering with Nagarro's proficiency in enterprise resource planning (ERP) and customer experience (CX) delivery, the new organization is expected to provide integrated solutions to multi-region enterprise clients. This strategic alignment is anticipated to facilitate improved service delivery across various verticals, including industrial, consumer, technology, media, and telecommunications (TMT), as well as banking, financial services, and insurance (BFSI).

The acquisition 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. Persistent has already secured approximately 21% of Nagarro's shares through a binding agreement with the largest shareholder, Lantano Beteiligungen GmbH. Furthermore, members of Nagarro's Management Board have expressed their intention to accept the offer and tender their shares.

In the broader market context, this transaction reflects ongoing consolidation trends within the technology services sector, particularly in the realm of AI and digital transformation. As companies increasingly seek to enhance their capabilities and market reach, strategic acquisitions like this are likely to become more prevalent. The combination of Persistent and Nagarro not only strengthens their competitive positioning in Europe and North America but also signals a commitment to driving innovation in AI-led engineering solutions. This merger is poised to create significant opportunities for both firms, their clients, and stakeholders in an evolving digital landscape.