Persistent Systems Limited’s Board of Directors has approved the establishment of Galaxy Germany Holding SE as a wholly-owned subsidiary. Additionally, the company announced the acquisition of a 21% stake in Germany-based Nagarro SE through its subsidiary, with plans for a Voluntary Public Takeover Offer to acquire the remaining 100%. The company also secured a bridge financing facility of EUR 1.4 billion for these strategic moves.
Strategic Expansion in Europe
Persistent Systems Limited (the ‘Company’) announced significant strategic decisions following its Board of Directors meeting held on June 26-27, 2026. The Board approved the establishment of Galaxy Germany Holding SE as a wholly-owned subsidiary, acquired through a local consultant in Germany. This entity, BidCo, was incorporated in December 2025 and will serve as a strategic vehicle for pursuing potential M&A opportunities in the European region. The acquisition of Galaxy Germany Holding SE was completed on June 26, 2026, for a consideration of EUR 135,000.
Nagarro SE Acquisition Underway
In a further strategic move, Persistent Systems, through its subsidiary Galaxy Germany Holding SE (BidCo), has entered into a Share Purchase Agreement to acquire a 21% shareholding in Nagarro SE, a listed entity in Germany. This acquisition was made from Lantano Beteiligungen GmbH on June 26, 2026, for EUR 81.00 per share. Nagarro SE is a Munich-headquartered leader in digital engineering with approximately 18,500 employees across 40+ countries and reported a revenue of EUR 1 billion (CY25).
Approval for Full Takeover of Nagarro SE
The Board of Directors has further approved the contemplated acquisition of 100% of the outstanding share capital of Nagarro SE. This will be pursued through a Voluntary Public Takeover Offer to the shareholders of Nagarro SE by BidCo. The Company and Nagarro SE have signed a Business Combination Agreement (BCA) detailing the terms and conditions. The completion of the full takeover is expected in Q4 CY2026 / Q1 CY2027.
Securing Bridge Financing
To facilitate these significant acquisitions, the Board has authorized BidCo to secure a committed bridge financing facility with a nominal amount of EUR 1,400,000,000 from Barclays Bank PLC. This financing will be utilized to settle applications received in the Voluntary Public Takeover Offer for Nagarro SE, the separate purchase of 21% shares from Lantano Beteiligungen GmbH, and for other transaction-related expenses. The Company will provide a corporate guarantee of up to EUR 1,540,000,000 to back this facility.
Source: BSE
