Persistent Systems to acquire Nagarro; combined entity to generate $2.9 billion in annualised revenue

Persistent Systems has launched a voluntary public takeover offer to acquire all outstanding shares of German digital engineering company Nagarro SE through its subsidiary Galaxy Germany Holding. This marks one of the biggest overseas acquisitions by an Indian IT services company.

If completed, the transaction will create a technology services company with an annual revenue run rate of around $2.9 billion and a workforce of more than 46,000 employees across over 40 countries.

The combined company will have more than 37,000 employees in India, over 3,500 in North America, and more than 3,000 in Europe.


The offer is around 140% higher than Nagarro's undisturbed closing share price on June 25, 2026. An undisturbed share price refers to the stock's closing price before news of a potential takeover or deal affected its value.

It is also nearly 94% above Nagarro's three-month volume-weighted average price (VWAP), which is the average share price weighted by trading volumes over the past three months.

The company has already secured an approximately 21% stake in Nagarro. Its largest shareholder, German holding and investment vehicle Lantano Beteiligungen GmbH, has agreed to tender its entire holding under a binding agreement.

Nagarro's management and supervisory boards have also backed the proposal. Subject to reviewing the final offer document, they intend to recommend that shareholders accept the offer.

The acquisition significantly expands Persistent's footprint in Europe. After the deal, Europe is expected to contribute around 22% of the combined company's revenue, compared with 9% currently. North America will remain its largest market, accounting for around 62% of revenue.

The combined business will also widen its total addressable market (TAM)—the total revenue opportunity available to a company—to more than $1.4 trillion. It will have businesses generating more than $500 million in annual revenue across Banking, Financial Services and Insurance (BFSI), Healthcare and Life Sciences (HLS), and Technology, Media and Telecommunications (TMT).

It will also have strong positions in the industrial segment, with revenue exceeding $400 million, and the consumer segment, with more than $300 million in revenue.

The offer will proceed only if shareholders representing at least 50% plus one share of all outstanding Nagarro shares accept it. The formal offer will be launched after Germany's financial regulator BaFin approves the offer document.

In line with Nagarro's management board, Persistent also plans to pursue a delisting of Nagarro's shares from the Prime Standard segment of the Frankfurt Stock Exchange as soon as legally feasible.

However, the company said it does not intend to enter into a domination and/or profit and loss transfer agreement (DPLTA)—a German legal arrangement that gives a parent company greater control over a subsidiary—for two years after the deal closes.

"Both Nagarro and Persistent have grown from humble beginnings into strong technology powerhouses with high-quality people and deep client relationships. Now, with the AI revolution, we are entering an era that will reward companies like ours that already have a digital-, data- and AI-DNA. It’s a moment of great opportunity, but it also needs scale and power to make the most of it,” said Manas Human, cofounder and CEO, Nagarro.

Sandeep Kalra, chief executive officer of Persistent Systems, said, “Nagarro is an exceptional strategic and cultural fit for Persistent, with shared values, complementary capabilities, and a common commitment to customer success. This combination strengthens our position in Europe, expands our scale in North America, and enhances our ability to help clients accelerate their AI and digital transformation journeys.”

In the March 2026 quarter, Persistent reported revenue of $436 million and $1.654 billion for FY26. The company has said it expects quarterly revenue to reach $500 million by the March 2027 quarter, implying an annualised revenue run rate of $2 billion.