Persistent Systems has announced its largest-ever acquisition, agreeing to buy Germany-based digital engineering firm Nagarro for $1.3 billion in an all-cash deal. The transaction positions the combined entity as a $2.9 billion AI-led digital engineering powerhouse with a significantly expanded global footprint and enhanced enterprise capabilities.
The company has offered €81 per share for all outstanding Nagarro shares, representing a premium of approximately 140% over Nagarro’s undisturbed closing price on June 25 and around 94% over its three-month volume-weighted average price.
Creating a $2.9 Billion Technology Company
The acquisition will combine Persistent’s strengths in artificial intelligence, cloud computing, and software engineering with Nagarro’s expertise in digital engineering, enterprise resource planning (ERP), and customer experience. The Persistent-Nagarro Group is projected to generate annual revenues exceeding $2.8 billion and employ over 46,000 people across more than 40 countries.
This deal significantly boosts Persistent’s presence in Europe, where it currently generates only 9% of its revenue. Post-acquisition, the European contribution is expected to rise to 22%.
Industry experts view the acquisition as a strategic move into AI-driven business transformation. Nagarro brings deep expertise in AI, digital engineering, ERP, cloud computing, and customer experience, with strong relationships in manufacturing, banking, healthcare, telecom, and consumer sectors.
Regulatory Process Underway
Persistent has already secured a commitment from Nagarro’s largest shareholder, which holds nearly 21% of the company. To close the deal, Persistent must obtain acceptance from at least 51% of Nagarro’s shareholders and receive regulatory approval from Germany’s BaFin. The transaction is expected to close during the fourth quarter of 2026 or the first quarter of 2027.
Following completion, Persistent plans to delist Nagarro from the Frankfurt Stock Exchange. Together, the combined companies will serve more than 350 enterprise clients and address a total addressable market exceeding $1.4 trillion.