Persistent Systems to buy Nagarro: €81 offer in 2026

Deal overview: a landmark overseas buyout

Persistent Systems has announced a voluntary public takeover offer to acquire Germany-listed Nagarro SE, in what it described as one of the biggest overseas acquisitions by an Indian IT services company. The proposed combination is positioned as an AI-led digital engineering platform with a revenue run-rate of nearly $1.9 billion. Persistent said the transaction would expand its presence across North America and Europe and materially scale its digital engineering capabilities. The companies have signed a Business Combination Agreement, and the combined entity is expected to operate as the Persistent-Nagarro Group after closing. Persistent also said this would be its biggest acquisition since listing in 2010.

Offer price and premium to market levels

The offer price is €81 per Nagarro share, payable in cash. Persistent said this represents an approximately 140% premium to Nagarro’s undisturbed closing price on June 25, 2026. It also cited an approximately 94% premium to the three-month volume-weighted average price (VWAP). Persistent stated it believes €81 per share reflects “full and fair value” for Nagarro. The structure is designed to move from an initial stake to full ownership if acceptance thresholds and approvals are met.

First step: 21% stake purchase from the largest shareholder

Persistent has agreed to buy 21% of Nagarro’s shares from Carl Georg Durschmidt, identified as a supervisory board member and the company’s largest shareholder. This initial block purchase amounts to roughly $1.273 billion. In parallel, Persistent will make a public offer to other shareholders for the remaining 79%, with the objective of acquiring 100% of the company and delisting it from the German stock exchange. For completion, Persistent needs to acquire at least 50% plus one share of outstanding Nagarro shares, based on the stated minimum acceptance threshold.

Financing: bridge loan led by Barclays

To fund the transaction, Persistent has secured a €1.4 billion bridge financing facility from a consortium led by Barclays. The same financing was described as roughly ₹150 billion (₹15,000 crore). Separately, the facility was also reported to be backed by a corporate guarantee of up to €1.54 billion from Persistent Systems Ltd. Persistent has indicated it has committed financing in place for the acquisition. The deal is structured as an all-cash offer through Galaxy Germany Holding SE, a wholly-owned subsidiary of Persistent.

What Nagarro brings: revenue base and delivery footprint

Nagarro is described as a Frankfurt-listed digital engineering and IT consulting company operating across 40+ countries. It reported around €1.0 billion in 2025 revenue and employs about 18,500 people. A notable operational detail is its India delivery presence, with 13,000+ employees already based in India, which was presented as a factor that could make integration smoother. Nagarro’s management has said it supports the offer, according to a press release referenced in the provided information.

Scale after the merger: revenue, workforce, hubs

Once completed, the combined group is expected to have a revenue run-rate of nearly $1.9 billion and a workforce of 46,000+ across 40+ countries. One release cited about 37,000 employees in India for the combined group. Persistent highlighted that the proposed combination strengthens its scale and European presence, while also deepening capabilities across AI, digital engineering, cloud, ERP, customer experience (CX), and data services. The companies also cited an expanded total addressable market (TAM) of over $1,400 billion and 350+ client relationships.

Timeline and conditions: BaFin review and expected closing

Persistent expects to launch the offer after approval of the offer document by Germany’s market regulator BaFin. Closing is anticipated in Q4 CY2026 or Q1 CY2027, with one report stating an expectation to close by March 2027. The transaction is subject to regulatory approvals and customary closing conditions. Persistent also clarified it does not intend to enter into a domination and/or profit and loss transfer agreement (DPLTA) for two years after closing.

Market positioning: aiming to move up India’s IT league table

Persistent said the acquisition is aimed at helping it leapfrog Mphasis Ltd and Coforge Ltd to become India’s seventh-largest IT services company. The strategic framing focuses on building a larger, more globally diversified platform as enterprise technology spending shifts toward AI-led modernisation and engineering-led transformation programs. Persistent’s CEO Sandeep Kalra was quoted as saying the next wave of enterprise transformation will be defined by “AI, engineering excellence, and global scale.”

Financial implications: EPS accretion and segment scale

Persistent has said the acquisition is expected to be cash EPS accretive in the first year after closing. The companies also cited $1.5 billion-plus combined revenue in each of BFSI, HLS, and TMT, indicating the scale of the merged portfolio across key verticals. While the offer price and acceptance thresholds are clear, the transaction still depends on shareholder response and regulatory clearances. Investors will also track how financing and post-deal integration are managed once the tender process begins.

Key numbers at a glance

Milestones and expected sequence

Conclusion

Persistent’s proposed acquisition of Nagarro at €81 per share is designed to create a larger AI-led digital engineering group with a nearly $1.9 billion revenue run-rate and a broader footprint in Europe and North America. The deal includes an initial 21% stake purchase and a voluntary public takeover offer for the remaining shares, funded through a €1.4 billion bridge facility led by Barclays. Next milestones include BaFin’s review of the offer document and shareholder tendering, with closing guided for late 2026 to early 2027, and one report pointing to March 2027 as the expected completion timeframe.