Persistent to Acquire Nagarro in $2.9 Billion AI-Led Engineering Deal

Persistent Systems has announced plans to acquire Munich-headquartered Nagarro SE through a voluntary public takeover offer valued at EUR 81 per share, marking one of the largest technology consolidation deals in the digital engineering and AI services sector. The transaction aims to create the Persistent -Nagarro Group, a global leader in AI-led digital engineering and enterprise modernization.

The all-cash offer represents a premium of approximately 140% over Nagarro’s undisturbed closing share price on June 25, 2026, and a 94% premium over its three-month volume-weighted average price. Persistent has already secured an approximately 21% stake in Nagarro through a binding agreement with the company’s largest shareholder, while members of Nagarro’s Management Board have also indicated their intention to tender their shares into the offer.

The proposed merger would create a company with a revenue run-rate of nearly $2.9 billion and a workforce of more than 46,000 employees operating across North America, Europe and Asia. The combined entity is expected to strengthen its capabilities in AI, digital engineering, cloud transformation, enterprise resource planning (ERP), customer experience (CX) and data-driven modernization services.

Dr. Anand Deshpande, Founder, Chairman and Managing Director of Persistent Systems, described the transaction as a long-term strategic move driven by shared values and complementary strengths. He emphasized that both companies possess a strong engineering culture, entrepreneurial mindset and commitment to innovation, making them well-positioned to capitalize on the growing demand for AI-led transformation.

Sandeep Kalra, Chief Executive Officer of Persistent Systems, called the acquisition a defining milestone in the company’s growth journey. According to Kalra, the combination will significantly strengthen Persistent’s presence in Europe, expand its North American footprint and enhance its ability to support global enterprises undertaking large-scale AI and digital transformation initiatives.

Nagarro Co-Founder and CEO Manas Human highlighted the strategic importance of scale in the AI era, noting that the combined organization would be better equipped to deliver complex intelligence transformation programs for clients worldwide. He said the partnership would create greater opportunities for customers, employees and shareholders of both organizations.

The transaction will significantly expand Persistent’s geographic reach, increasing its European revenue contribution from 9% to 22% and creating a more balanced global revenue mix. The combined company will serve over 350 marquee clients, including major banking institutions, healthcare organizations and leading automotive manufacturers across Europe and North America.

The offer remains subject to regulatory approvals and a minimum acceptance threshold of 50% plus one share of all outstanding Nagarro shares. Persistent expects to launch the formal offer following approval of the offer document by Germany’s Federal Financial Supervisory Authority (BaFin) with the transaction expected to close between the fourth quarter of 2026 and the first quarter of 2027.

Upon completion, Persistent intends to pursue the delisting of Nagarro shares from the Frankfurt Stock Exchange while preserving the strengths, leadership culture and client relationships of both organizations. The company stated that the merger would accelerate its ambition of becoming one of the world’s leading AI-led digital engineering and technology services providers.