German digital engineering firm Nagarro to be acquired by Persistent Systems

In one of the largest overseas acquisitions by an Indian IT services firm, Persistent Systems on Saturday announced a voluntary public takeover offer to acquire all outstanding shares of German digital engineering firm Nagarro SE at €81 per share in cash.

The offer is being made through the IT company's arm -- Galaxy Germany Holding -- and follows the signing of a business combination agreement between the two companies, the release from Persistent Systems showed.

Nagarro’s management and supervisory board support the transaction and intend to recommend acceptance of the Offer to Nagarro shareholders, subject to their review of the offer document, it added.

Further, Nagarro’s largest shareholder -- Lantano Beteiligungen GmbH -- has agreed to tender its entire 21 per cent stake for the bidder.

This combination will strengthen the Indian company's position in Europe and expand its scale in North America, according to Sandeep Kalra, Executive Director and Chief Executive Officer, Persistent Systems.

“The next wave of enterprise transformation will be defined by AI, engineering excellence, and global scale. Nagarro is an exceptional strategic and cultural fit for Persistent, with shared values, complementary capabilities, and a common commitment to customer success," Kalra said.

"It enhances our ability to help clients accelerate their AI and digital transformation journeys," he added.

The deal, which values Nagarro at a 140 per cent premium to its undisturbed closing price on June 25 and a 94 per cent premium to its three‑month volume‑weighted average price is expected to close by Q4 CY26 or Q1 CY27.

The offer is subject to a minimum acceptance threshold of 50 per cent plus one share, regulatory approvals and clearance of the offer document by Germany's financial regulator BaFin.

The proposed combination is designed to create a scaled, globally diversified AI-led digital engineering and enterprise modernisation powerhouse with at-scale presence in North America and Europe and meaningful global exposure, according to the company.

The combined Persistent-Nagarro group would be better positioned to support multi-region enterprise clients requiring integrated AI, engineering, ERP/CX, data and cloud capabilities across local and global delivery models.