Mega Deal, Major Doubts: Street Questions Nagarro Buyout

$PERSISTENT shares tumbled after announcing its €1.1 billion acquisition of Nagarro, as several brokerages raised concerns over the high acquisition cost and potential pressure on margins. While the deal is expected to create a global AI-led digital engineering powerhouse with nearly $2.9 billion in annualized revenue, investors are worried about integration risks, execution challenges, and whether the steep premium paid can generate adequate returns. The market's reaction suggests that, for now, concerns over valuation are outweighing the long-term strategic benefits.