Persistent Systems to Acquire Nagarro for €1.1 Billion

Persistent Systems has announced its plans to acquire Munich-based digital engineering company Nagarro for €1.1 billion, approximately $1.2 billion USD. This public takeover offer is priced at €81 per share and arises from a Business Combination Agreement between the two firms. The deal underlines Persistent Systems’ aim to broaden its scope in the North American and European markets while positioning itself as a formidable player in the AI-driven digital engineering sector.

Based in Pune, India, Persistent Systems is seeking to leverage Nagarro's extensive footprint. Nagarro operates in numerous sectors and maintains a workforce of approximately 18,500 employees across 40 countries, posting revenues of €1 billion in 2025. The acquisition is anticipated to form a combined entity with a substantial $2.9 billion valuation, comprising over 46,000 employees and expanding its reach in more than 40 countries. This will enable the group to better serve enterprise clients with integrated solutions in artificial intelligence, engineering, data management, and cloud services.

Anand Deshpande, Founder, Chairman, and Managing Director of Persistent Systems, outlined the strategic significance of the acquisition. He underscored the importance of marrying technical capability with global reach to maximize the potential benefits that artificial intelligence brings to the industry. His vision reflects an ongoing shift within the sector towards deeper integration and application of AI technologies.

Persistent Systems' Executive Director and CEO, Sandeep Kalra, characterized the merger as pivotal in the company's journey towards establishing a leading global technology services firm. This aligns with the industry-wide trend of consolidation, as companies increasingly pursue scale through acquisitions to compete effectively in the dynamic digital transformation landscape.

Looking beyond the immediate transaction, the integration of Nagarro into Persistent Systems promises to enhance capabilities and competitive positioning. The deal could potentially stimulate further consolidation within the digital engineering market as competitors respond to the creating synergy effects and broadened service offerings of the merged entity. The finalization of this transaction will set a new benchmark for similar tie-ups, advancing Persistent Systems' broader strategic ambitions.