Persistent Systems Expands in Europe with Nagarro Acquisition

Persistent Systems, an Indian technology company, announced a major deal to acquire Nagarro, a Germany-based digital engineering firm. The deal is valued at around €1.27 billion, which equals about $1.45 billion. Persistent already owns about 21% of Nagarro through a share purchase agreement.

The acquisition will happen through Persistent’s subsidiary, Galaxy Germany Holding SE. This subsidiary was formed specifically for the deal and cost €135,000 to incorporate. Persistent has also arranged a bridge financing facility of up to €1.4 billion to fund the purchase, with Barclays Bank PLC handling the financing arrangements.

Persistent plans to buy all remaining shares of Nagarro by offering €81 per share in cash. Nagarro’s management and supervisory boards support the deal and recommend shareholders accept the offer. But the purchase still needs regulatory approvals and the agreement of shareholders holding at least 50% plus one share. The transaction is expected to complete by late 2026 or early 2027.

Building a Stronger Global Tech Player

Persistent’s CEO, Anand Deshpande, said the combined company will blend deep technical skills with global reach. He emphasized the importance of attracting and inspiring great talent to help clients in this new era of technology. The acquisition will boost Persistent’s ability to handle complex AI and digital transformation projects on a global scale.

Manas Human, CEO of Nagarro, highlighted that both companies grew from modest origins into powerful technology firms. He said the AI revolution now rewards companies with strong digital, data, and AI expertise. Human added that together, they will deliver large-scale intelligence transformation programs across industries worldwide.

Sandeep Kalra from Persistent said, “The next wave of enterprise transformation will be defined by AI, engineering excellence, and global scale.” He called the merger a defining milestone on their journey to build a global, engineering-led organization.

Expanding Reach and Revenue

The combined entity will have about 46,000 employees spread across 40 countries. Together, they generate an annual revenue run rate of over $2.9 billion. After the acquisition, Europe’s share of revenue is expected to rise from 9% to around 22%, while North America will contribute about 62%.

Nagarro’s largest shareholder, Lantano Beteiligungen GmbH, holds a significant stake in the company. Their support will be important for the deal’s approval. The combined company will maintain over 350 client relationships and compete in a total addressable market worth more than $1.4 trillion.

Persistent’s share price closed at €4,841.50 on June 25, 2026, just days before the acquisition announcement. The stock dropped 1.77% that day, reflecting some market reaction to the news.

This acquisition marks a big step for Persistent Systems. It strengthens their presence in Europe and adds important digital engineering and AI capabilities. The deal aims to create a more powerful global business ready to lead in the AI-driven future.