Persistent Systems has signed an agreement to acquire German IT services company Nagarro SE in an all-cash transaction valued at about $2.9 billion, marking one of the biggest acquisitions by an Indian technology company in the AI and digital engineering space.
The company has offered EUR 81 per share to Nagarro shareholders and has already secured the backing of the company’s largest shareholder, giving it an initial holding of around 21 per cent. Senior members of Nagarro’s management have also agreed to participate in the offer.
Once completed, the acquisition will create a combined organisation with close to $2.9 billion in annual revenue and a workforce of more than 46,000 employees serving clients across over 40 countries.
The merger is expected to strengthen Persistent’s capabilities across artificial intelligence, cloud services, enterprise applications, digital engineering, customer experience and data-led transformation, while substantially increasing its presence in Europe.
Commenting on the acquisition, Dr Anand Deshpande, Founder, Chairman and Managing Director, Persistent Systems, said the two companies share similar engineering values and innovation-led cultures, making the combination well suited to address growing enterprise demand for AI-driven transformation.
Sandeep Kalra, Chief Executive Officer, Persistent Systems, said the acquisition would help the company deepen its presence in Europe while expanding relationships with global enterprises undertaking large-scale digital transformation programmes.
Manas Human, Co-Founder and Chief Executive Officer, Nagarro, said greater scale would allow the combined business to deliver more complex AI and technology programmes while creating long-term value for customers, employees and investors.
Following the transaction, Europe is expected to account for around 22 per cent of the combined company’s revenue, compared with about 9 per cent currently. The merged business will also serve more than 350 enterprise customers across industries such as banking, healthcare and automotive.
The acquisition is subject to regulatory approvals and shareholder acceptance. Persistent expects to complete the transaction between the fourth quarter of 2026 and the first quarter of 2027, after which it intends to delist Nagarro from the Frankfurt Stock Exchange.
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