Persistent Systems Limited has announced key strategic decisions following its Board of Directors meeting on June 26-27, 2026. The company has established Galaxy Germany Holding SE as a wholly-owned subsidiary to pursue M&A opportunities in Europe. Furthermore, Persistent has agreed to acquire a 21% stake in Germany-listed Nagarro SE, with plans for a subsequent voluntary public takeover offer. This move aims to bolster Persistent’s European presence and expand its global IT services platform.
Persistent Systems Board Approves Strategic Expansion
Persistent Systems Limited convened its Board of Directors meeting, which commenced on Friday, June 26, 2026, and concluded on Saturday, June 27, 2026. During this meeting, the Board discussed and approved several significant strategic initiatives aimed at enhancing the company’s global footprint, particularly within the European market.
Establishment of Galaxy Germany Holding SE
A primary decision was the establishment of Galaxy Germany Holding SE as a wholly-owned subsidiary of Persistent Systems. This entity, designated as ‘BidCo’, was created through the acquisition of a 100% stake via a local consultant in Germany. The Share Purchase Agreement was executed on June 26, 2026. Galaxy Germany Holding SE, with a share capital of EUR 120,000, is intended to serve as a strategic vehicle for pursuing potential Mergers and Acquisitions (M&A) opportunities within the European region. The cost associated with establishing this subsidiary was EUR 135,000. This entity is newly incorporated and currently has no operational business.
Acquisition of Nagarro SE Stake
In a significant move to strengthen its European operations, Persistent has entered into an agreement to acquire a 21% shareholding in Nagarro SE, a listed entity in Germany. This acquisition is being made from Lantano Beteiligungen GmbH, represented by Mr. Carl-Georg Dürschmidt, identified as Nagarro SE’s largest shareholder. The Share Purchase Agreement was signed on June 26, 2026. The transaction is subject to customary closing conditions and regulatory approvals. Persistent aims to leverage Nagarro’s expertise to enhance its scale and offer a more diversified global IT services platform.
Nagarro SE: A Detailed Overview
Nagarro SE, headquartered in Munich, Germany, is a prominent leader in digital engineering, boasting approximately 18,500 employees across 40+ countries. The company has deep roots in industrial, consumer, TMT, and BFSI verticals, with a projected revenue of EUR 1 billion for CY25. Persistent anticipates that the combination will create a robust engineering powerhouse with a projected revenue of approximately USD 2.9 billion and over 46,000 employees.
The acquisition of the 21% stake is priced at EUR 81.00 per share. This initial acquisition is a precursor to a planned Voluntary Public Takeover Offer to the remaining shareholders of Nagarro SE. The settlement of this takeover is expected in Q4 CY2026 / Q1 CY2027.
Financing the Acquisition
To facilitate these strategic moves, Persistent Systems has secured approval for bridge financing totaling EUR 1,400,000,000 from Barclays Bank PLC. This facility will be utilized for settling applications received in the Voluntary Public Takeover Offer, the separate purchase of 21% shares from Lantano Beteiligungen GmbH, and potentially supporting Nagarro with debt refinancing and other related expenses. The Company will provide a corporate guarantee of up to EUR 1,540,000,000 to Barclays to secure this bridge financing facility. The agreement for this financing facility has a term of 18 months.
These strategic initiatives underscore Persistent Systems’ commitment to aggressive growth and expansion within the global IT services landscape, particularly by strengthening its presence and capabilities in key European markets.
Source: BSE
