Persistent Systems to Acquire Nagarro, Creating a $2.9 Billion AI-Driven Digital Engineering Leader

Persistent Systems ($PERSISTENT) has announced a Business Combination Agreement with Nagarro SE, marking a significant step toward building a global AI-led digital engineering company. Under the proposed transaction, Persistent will launch a voluntary public takeover offer to acquire all outstanding Nagarro shares at EUR 81 per share, representing a 140% premium over Nagarro’s undisturbed closing price on June 25 and a 94% premium to its three-month volume-weighted average price. The company has already secured an approximately 21% stake in Nagarro through an agreement with its largest shareholder, while members of Nagarro’s management have also indicated their intention to participate in the offer. Once completed, the combined Persistent–Nagarro Group is expected to generate an annual revenue run-rate of around $2.9 billion, employ more than 46,000 professionals, and operate across over 40 countries. The merger is expected to strengthen the group's footprint in North America and Europe, expand capabilities in AI-led engineering, cloud, ERP, customer experience and enterprise modernization, and increase Europe’s contribution to approximately 22% of the combined revenue profile. The transaction remains subject to regulatory approvals and a minimum shareholder acceptance of 50% plus one share, with completion targeted for Q4 CY2026 or Q1 CY2027. Following completion, Persistent also intends to pursue the delisting of Nagarro shares from the Frankfurt Stock Exchange, subject to applicable legal and regulatory requirements. The proposed combination reflects a strategic move to strengthen global scale, technology capabilities and long-term growth in the digital engineering industry. Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.