Persistent Systems has launched a voluntary public takeover offer to acquire all outstanding shares of German digital engineering company Nagarro SE, marking one of the largest overseas acquisitions by an Indian IT services company.
The transaction, if completed, will create a technology services company with an annual revenue run rate of nearly $2.9 billion and a workforce of more than 46,000 employees across over 40 countries, significantly expanding Persistent’s global scale and European presence.
The combined entity will employ over 37,000 people in India, more than 3,500 in North America, and over 3,000 in Europe.
Persistent is offering a premium of about 140% over Nagarro’s undisturbed closing share price on June 25, 2026, and nearly 94% above its three-month volume-weighted average price.
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The company has already secured an approximately 21% stake in Nagarro. Its largest shareholder, Lantano Beteiligungen GmbH, has signed a binding agreement to tender its entire holding. Nagarro’s management and supervisory boards have also backed the proposal and intend to recommend shareholders accept the offer, subject to reviewing the final offer document.
The acquisition is expected to reshape Persistent’s geographic mix. Europe will account for about 22% of the combined company’s revenue, up from 9% currently, while North America will remain its largest market with around 62% of revenue.
The deal also broadens Persistent’s total addressable market to more than $1.4 trillion, strengthening its presence across Banking, Financial Services and Insurance (BFSI), Healthcare and Life Sciences (HLS), Technology, Media and Telecommunications (TMT), as well as industrial and consumer sectors.
The offer will become effective only if shareholders representing at least 50% plus one share of Nagarro’s outstanding shares accept it. The formal bid will be launched after approval of the offer document by Germany’s financial regulator BaFin.
Following completion, Persistent plans to pursue the delisting of Nagarro’s shares from the Prime Standard segment of the Frankfurt Stock Exchange. However, the company said it does not intend to enter into a domination and profit and loss transfer agreement (DPLTA) for two years after the transaction closes.
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“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, co-founder and CEO of Nagarro.
Persistent reported revenue of $436 million for the March 2026 quarter and $1.654 billion for FY26. The company has previously guided for quarterly revenue of $500 million by the March 2027 quarter, implying an annualised revenue run rate of around $2 billion.
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