Persistent Systems has signed a Business Combination Agreement with Germany-based Nagarro, marking one of the largest consolidation moves in the global digital engineering services industry. As part of the agreement, Persistent will launch a voluntary public takeover offer to acquire all outstanding Nagarro shares at €81 per share, valuing the transaction at a significant premium and paving the way for the creation of a combined AI-led digital engineering group with nearly $2.9 billion in annual revenue.
The all-cash offer represents a 140% premium 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 approximately 21% ownership 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.
The proposed combination will bring together 46,000-plus employees across more than 40 countries, combining Persistent’s strength in AI-led engineering, North American enterprise business and technology partnerships with Nagarro’s strong European footprint, digital engineering expertise, ERP, customer experience capabilities and AI-driven transformation services.
“Together, we are creating one of the industry’s leading AI-led, engineering-driven digital transformation companies, creating greater opportunities for our clients, our people, and all our stakeholders.”
— Sandeep Kalra, Executive Director & CEO, Persistent Systems
Persistent Founder, Chairman and Managing Director Dr. Anand Deshpande described the transaction as a milestone built on shared engineering values and a long-term vision.
He said the two companies share similar cultures, entrepreneurial spirit and commitment to customer success, making them well positioned to help enterprises navigate the AI era while creating greater opportunities for employees and clients alike.
Persistent CEO Sandeep Kalra said the acquisition represents a defining moment in the company’s growth strategy.
According to Kalra, combining the two organisations strengthens Persistent’s European presence, expands its North American scale and significantly enhances its ability to deliver AI-powered digital transformation services globally.
Nagarro Co-Founder and CEO Manas Human said the AI revolution requires greater scale and deeper engineering capabilities, adding that the combined organisation will be able to execute increasingly complex AI transformation programmes for global enterprises.
Nagarro Supervisory Board Chairman Christian Bacherl also endorsed the transaction, saying Persistent offers the scale, AI capabilities and shared culture needed to accelerate Nagarro’s long-term ambitions while providing shareholders with an attractive premium.
The merged entity will substantially strengthen Persistent’s global market position, creating a more balanced geographical revenue mix with North America contributing about 62%, Europe around 22%, and the remaining business spread across other global markets.
The companies said the transaction will significantly expand their combined addressable market across key sectors including banking, financial services, healthcare, life sciences, technology, media, telecommunications, manufacturing and consumer industries. Together, they will serve more than 350 marquee enterprise customers, including leading automotive manufacturers, banks and healthcare organisations worldwide.
Persistent intends to retain Nagarro’s leadership culture while preserving employee agreements and organisational continuity. The company also does not intend to pursue a domination or profit-and-loss transfer agreement for at least two years after the transaction closes.
Following completion of the offer, Persistent plans to seek the delisting of Nagarro shares from the Frankfurt Stock Exchange’s Prime Standard, subject to legal and regulatory requirements.
The takeover remains subject to approval by Germany’s financial regulator BaFin, regulatory clearances and a minimum acceptance threshold of 50% plus one share. The companies expect the transaction to close during Q4 CY2026 or Q1 CY2027.