Indian IT services firm Persistent Systems has announced a major takeover of German digital engineering company Nagarro, in a deal valued at roughly €1 billion that will create one of the larger AI-led engineering groups in the global IT services landscape.

The Deal Structure and Price

Persistent, through its wholly owned unit Galaxy Germany Holding SE, will offer EUR 81 in cash for each Nagarro share, representing a premium of about 140 per cent to Nagarro's undisturbed closing price on 25 June. The all-cash deal represents a 140 per cent premium to Nagarro's closing share price on June 25 on the Frankfurt Stock Exchange and about 94 per cent to the three-month volume-weighted average price. Based on the outstanding shares of Nagarro, the deal works out to about €1 billion.

Persistent Systems said on Saturday that it will take over German digital engineering firm Nagarro, with the deal expected to form a larger AI-led digital engineering group. Galaxy Germany Holding SE entered into a Share Purchase Agreement with Lantano Beteiligungen GmbH on 26 June 2026 for the acquisition of 21% shareholding of Nagarro SE, subject to the satisfaction of customary closing conditions and requisite regulatory approvals.

Securing the Backing of Nagarro's Largest Shareholder

Persistent moved early to lock in the support needed to push the deal through. Persistent has already secured roughly 21 per cent of Nagarro's shares after entering into a binding agreement with Nagarro's largest shareholder, Lantano Beteiligungen GmbH, to acquire its entire stake at the offer price. Members of Nagarro's management board have also said they plan to tender their shares.

What the Combined Company Will Look Like

The merger creates a substantially larger combined entity with a much broader global footprint. If completed, the transaction would create a combined Persistent-Nagarro group with about USD 2.9 billion in annual revenue and more than 46,000 employees across over 40 countries, strengthening Persistent's presence in Europe while expanding scale in North America. Nagarro is a Munich-headquartered leader in digital engineering with ~18,500 employees across 40+ countries, deep roots in industrial, consumer, TMT and BFSI verticals and a total revenue of EUR 1 billion (CY25).

What Leadership Is Saying

Executives on both sides framed the deal as a strategic response to AI reshaping the IT services industry. "The next wave of enterprise transformation will be defined by AI, engineering excellence, and global scale," Persistent Chief Executive Officer Sandeep Kalra said, adding that the combination would enhance the group's ability to support global clients. Anand Deshpande, Founder, Chairman and Managing Director of Persistent Systems, said, "AI is reshaping the industry at an unprecedented pace... Success will belong to companies that combine deep technical capability with global reach, while continuing to attract, develop and inspire exceptional people."

Nagarro's own leadership echoed the urgency around scale in an AI-driven market. "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 chief executive officer of Nagarro.

Plans for Delisting and Future Structure

Once the takeover is finalized, Persistent intends to remove Nagarro from public markets entirely. Persistent said it intends to pursue delisting of Nagarro shares from the regulated market of the Frankfurt Stock Exchange, as soon as practicable and when legally feasible, though no specific timeline was provided in the release.

Part of a Broader Wave of Indian IT Consolidation

This acquisition fits into a much wider trend of Indian IT companies pursuing M&A to build scale around AI-driven services. Coforge bought Encora for $2.35 billion, HCLTech acquired HPE's telecom solutions business for $160 million and Jaspersoft for $240 million. TCS bought Coastal Cloud for about $700 million last year, while Infosys announced the purchase of Optimum Healthcare IT, an American healthcare technology consulting company, for $465 million.

Persistent itself has been active on multiple fronts beyond this acquisition. Separately, Persistent said it had signed a deal with a US technology company with a total contract value of $650 million over more than six years, focused on product development, product support, cloud services operations and support.

For ongoing, authoritative coverage of M&A activity and corporate disclosures from Persistent Systems and other Indian IT firms, the Bombay Stock Exchange's corporate announcements section remains a key resource for tracking official filings as the deal progresses.

What Comes Next

With Nagarro's largest shareholder and management board already signaling support for the tender offer, the deal now moves toward regulatory approval and the formal takeover process. If completed as planned, the combined Persistent-Nagarro group would significantly expand Persistent's European footprint and AI engineering capabilities, positioning the company to compete more directly with larger Indian IT services rivals amid an industry-wide push toward AI-led consolidation.