Business Deal: The merger of the two companies will create a $2.9 billion AI-based engineering company with over 46,000 employees across 40 locations, with 37,000 employees in India alone.

Persistent Systems set to acquire Nagarro SE

Persistent Systems to acquire Nagarro: Pune-headquartered tech company Persistent Systems is set to acquire German IT company Nagarro SE. This would be one of the largest foreign deals in history.

The company announced on June 27 that it would, through its subsidiary Galaxy Germany Holding, enter into a voluntary public takeover to acquire all outstanding shares of German digital engineering firm Nagarro SE in cash at 81 euros per share. This represents a 140% premium to Nagaro's closing share price on June 25, 2026. The deal is expected to close by Q4CY26 or Q1CY27.

Approval from the largest shareholder

Persistent has already received support for this 'Business Combination Agreement' from Nagarro's largest shareholder, Lantano Beteiligungen GmbH. It has agreed to sell its entire 21% stake in the company. Nagarro's Management and Supervisory Boards have also endorsed the deal and intend to advise shareholders to accept the offer, subject to review of the final offer document.

What will happen after the merger?

The merger of Persistent Systems and Nagarro SE will create a robust company with over 46,000 employees in over 40 countries. Approximately 37,000 of these employees will be in India alone, with the remaining 3,500 in North America and 3,000 in Europe. Together, they will create a global AI-based digital engineering company with annual revenues of $2.9 billion (over Rs 24,000 crore). Following this deal, the company will have over 350 major clients, increasing its total addressable market (TAM) to $1.4 trillion.

Indian company dominates the European market.

Following the deal, Persistent's revenue from the European market will increase from 9% to 22%. This will give the company a strong foothold in Europe, particularly in Germany. Both companies are focused on delivering AI-based digital engineering, cloud, ERP, and customer experience solutions globally.