In its largest-ever overseas acquisition, Persistent Systems announced a voluntary public takeover of outstanding shares of Nagarro Group, a global AI-led digital engineering company, at EUR 81 ($ 92) per share. Persistent has already secured a 21% stake in Nagarro, with Nagarro’s largest shareholder committing its entire stake under a binding agreement.
The all-cash offer is at a premium of 140% to the undisturbed closing price on June 25, 2026, and 94% to the three-month volume-weighted average price. Persistent will fund the transaction with committed financing from Barclays Bank. This acquisition will expand Persistent’s technology services footprint in Europe.
Nagarro is headquartered in Munich, with total revenue of EUR 1 billion (CY25), 18,500 employees across 40 countries, and a presence in the industrial, consumer, technology, media, telecom, and BFSI verticals. Nagarro SE is a listed entity in Germany. The Nagarro management board members have announced their intention to accept the offer and tender their shareholding.
Deal Structure
Persistent incorporated Galaxy Germany Holding SE as a wholly-owned direct subsidiary for the acquisition. Galaxy Germany has entered into a fully binding share purchase agreement with Lantano Beteiligungen GmbH, the investment vehicle of the largest Nagarro shareholder, to acquire their 21% stake.
Persistent will be providing the corporate guarantee to Barclays Bank PLC in favour of Galaxy Germany Holding to secure the bridge financing facility. The size of the agreement bridge financing is EUR 1.4 billion ($1.6 billion) for 18 months and backed by a Corporate Guarantee up to EUR 1.54 billion ($1.7 billion).
Anand Deshpande, founder, chairman and Managing Director, Persistent Systems, said AI was reshaping their industry at an unprecedented pace, and success would belong to companies that combine deep technical capability with global reach, while continuing to attract, develop and inspire exceptional people. “Together, Persistent and Nagarro will be better positioned to help our clients navigate this new era, create greater opportunities for our teams, and build an organisation that will endure for many years to come,” he said.
Sandeep Kalra, Executive Director and Chief Executive Officer, Persistent Systems, said Nagarro was an exceptional strategic and cultural fit for Persistent.
Minimum Acceptance Threshold
The offer is subject to a minimum acceptance threshold of 50% plus one share of all outstanding shares. Persistent expects to launch the offer after regulatory approval, with closing anticipated in Q4CY26 or Q1 CY27. Persistent intends to delist Nagarro shares from the Frankfurt Stock Exchange as soon as practicable and legally feasible.
The transaction is expected to be cash EPS accretive for Persistent shareholders in the first year. Revenues of the combined entity would be $ 2.9 billion. The company would have 46,000 employees across 40 countries and bring strong client relationships across Europe, including four of Europe’s top five automotive manufacturers.