Pune-based Persistent Systems Limited has agreed to acquire Germany’s Nagarro SE, a digital engineering firm, in an all-cash deal. The combined company will be worth about USD 2.9 billion (roughly Rs 24,400 crore) in annual revenue, with over 46,000 employees in 40-plus countries.
The board cleared the deal at a meeting that ran from Friday into the early hours of Saturday, according to a stock exchange filing.
How the deal works
Persistent is buying Nagarro in two steps.
First, it set up a German subsidiary, Galaxy Germany Holding SE, which has already signed a deal to buy a 21% stake in Nagarro from its largest shareholder, Lantano Beteiligungen GmbH. This stake cost EUR 135,000 (about USD 1.54 lakh, or roughly Rs 1.46 crore) to set up the holding company itself, separate from the share price.
Second, Persistent will now offer to buy out every other Nagarro shareholder, too. The price for shares: EUR 81 each, which works out to roughly USD 92 or about Rs 8,735 per share. That is about 140% more than what Nagarro’s stock was trading at before the news broke.
Nagarro’s management has backed the deal and plans to recommend that shareholders accept the offer.
Where the money comes from
Persistent isn’t paying entirely out of its own pocket. It has lined up a loan of EUR 1.4 billion (about USD 1.6 billion, or roughly Rs 15,100 crore) from Barclays Bank to fund the buyout. To secure this loan, Persistent’s board has approved backing it with a corporate guarantee of up to EUR 1.54 billion (about USD 1.76 billion, or roughly Rs 16,600 crore).
In simple terms, Persistent is borrowing heavily for this deal, with the parent company promising to cover the loan if its German subsidiary cannot.
Why Persistent wants Nagarro
Nagarro, founded in 1996 and headquartered in Munich, posted revenue of EUR 999.3 million in CY2025 and employs about 18,500 people across 40-plus countries. Persistent’s FY26 revenue stood at roughly USD 1.7 billion, up 17.4% year-on-year.
Persistent is strong in North America. Nagarro is strong in Europe, with deep ties to top European automakers and other large clients. Buying Nagarro instantly gives Persistent a much bigger footprint in Europe, more specialised skills like enterprise software (ERP) and customer experience design, and more scale to compete for large global technology contracts.
Anand Deshpande, Persistent’s founder and chairman, said the two companies share similar values around engineering quality and client trust. Nagarro’s CEO Manas Human said the combined scale would help deliver “complex intelligence transformation programs” that clients are increasingly demanding.
What happens next
The full buyout offer still needs approval from Germany’s financial regulator, BaFin, plus competition and investment clearances in India and other countries. Persistent expects the whole process to close between October 2026 and March 2027. Once it’s done, Nagarro shares are expected to be taken off the Frankfurt Stock Exchange.
