Persistent Systems has announced a significant Business Combination Agreement (BCA) with Nagarro SE, aiming to create a global leader in AI-led digital engineering. The agreement involves a voluntary public takeover offer for all outstanding Nagarro shares at EUR 81 per share. This strategic move is set to enhance Persistent’s global scale, AI capabilities, and client offerings, with a combined revenue potential of approximately USD 2.9 billion and over 46,000 employees.
Persistent Systems to Combine with Nagarro
Persistent Systems Limited has entered into a definitive Business Combination Agreement (BCA) with Nagarro SE, intending to form a formidable global leader in AI-led digital engineering. This strategic alliance includes a voluntary public takeover offer by Persistent’s wholly-owned subsidiary, Galaxy Germany Holding SE, for all outstanding Nagarro shares at a cash consideration of EUR 81 per share.
Strategic Rationale and Benefits
The proposed combination is designed to create a scaled, globally diversified AI-led digital engineering powerhouse. It aims to leverage Persistent’s AI engineering leadership and North American scale with Nagarro’s European business, complementary verticals, and ERP/CX delivery expertise. The combined entity is projected to have a revenue run-rate of approximately USD 2.9 billion, with a workforce exceeding 46,000 employees across more than 40 countries. This merger is expected to significantly enhance offerings in AI, digital, ERP, and CX capabilities, benefiting clients and stakeholders alike.
Key Offer Details and Conditions
The offer price of EUR 81 per share represents a substantial premium of approximately 140% to Nagarro’s undisturbed closing price on June 25, 2026. Nagarro’s Management and Supervisory Board have expressed support for the transaction and intend to recommend its acceptance to shareholders, pending review of the offer document. Persistent has already secured an approximately 21% stake in Nagarro through a binding agreement with Lantano Beteiligungen GmbH, the largest shareholder. The offer is subject to a minimum acceptance threshold of 50% plus one share and regulatory approvals, with closing anticipated in Q4 CY26 / Q1 CY27. Persistent does not intend to enter into a domination and/or profit and loss transfer agreement (DPLTA) for two years post-closing. Following the completion of the offer, Persistent plans to pursue a delisting of Nagarro shares from the Frankfurt Stock Exchange.
Leadership Perspectives
Dr. Anand Deshpande, Founder, Chairman and Managing Director of Persistent Systems, highlighted the shared values and entrepreneurial spirit of both companies, emphasizing their combined potential to navigate the AI revolution. Sandeep Kalra, CEO of Persistent Systems, stated that the merger is a defining milestone in building a global, engineering-led technology services leader, strengthening their position in Europe and expanding scale in North America. Manas Human, CEO of Nagarro, expressed excitement about joining forces to deliver complex intelligence transformation programs at scale. Christian Bacherl, Chairman of Nagarro’s Supervisory Board, affirmed that the offer price reflects Nagarro’s value and that the board supports the transaction.
About the Companies
Persistent Systems is a global services and solutions company focused on AI-led, platform-driven Digital Engineering and Enterprise Modernization, with over 27,500 employees across 21 countries. Nagarro is a global AI transformation and engineering leader employing around 18,500 people in 40 countries.
Source: BSE
