Persistent and Nagarro Announce EUR 81 Takeover Offer

Galaxy Germany Holding SE (a wholly-owned Persistent subsidiary) is the legal bidder. Persistent has already secured a binding commitment from Lantano Beteiligungen GmbH (the largest Nagarro shareholder) for its approximately 21% stake, and Nagarro's Management Board members have declared their intention to tender. The minimum acceptance threshold is 50% plus one share. Closing is expected in Q4 2026/Q1 2027, subject to BaFin approval. Barclays is providing committed financing. Per Business Standard, the transaction value based on outstanding Nagarro shares works out to roughly EUR 1 billion. The deal is expected to be EPS accretive for Persistent shareholders in year one.

Persistent (BSE: PERSISTENT) reported approximately $1.7 billion in revenue in its last fiscal year, with 17.4% year-on-year growth and 24 consecutive quarters of sequential revenue growth. Nagarro (Frankfurt: NA9) generated approximately EUR 1 billion in CY2025 revenue across 18,500 employees in 40 countries - including four of Europe's top five automotive manufacturers and deep ERP/CX delivery capability across industrial, consumer, TMT, and BFSI verticals. After the combination, Persistent's European revenue share grows from 9% to 22%, creating a geographic split of North America 62%, Europe 22%, Rest of World 16%.

The merged 'Persistent - Nagarro Group' targets a combined revenue run-rate of approximately $2.9 billion with 46,000+ employees. The deal announcement identifies 'Frontier AI capability' as one of the combination's six core pillars, citing 'AI Forward Deployed Engineering' capabilities and partnerships with hyperscalers, ISVs, and what the official press release terms 'frontier labs' - though no specific lab partnerships are named in the disclosure. Total client coverage: 350+ marquee relationships, including 7 of the top 10 US and Indian banks, 8 of the top 15 healthcare and life sciences companies, and 4 of the top 5 European automotive firms.

Sandeep Kalra, CEO of Persistent: "The next wave of enterprise transformation will be defined by AI, engineering excellence, and global scale. Bringing Nagarro and Persistent together is a defining milestone in our journey to build a global, engineering-led technology services leader." Manas Human, Co-Founder and CEO of Nagarro: "With the AI revolution, we are entering an era that will reward companies like ours that already have a digital-, data- and AI-DNA. It's a moment of great opportunity, but it also needs scale and power to make the most of it."

BaFin must approve the offer document before the formal launch - the ~21% Lantano commitment and management board support improve the odds of reaching the 50%+ threshold. Nagarro will be delisted from Frankfurt's Prime Standard following close; Persistent does not intend a domination/profit transfer agreement (DPLTA) for two years post-closing. Separately, on the same day Persistent announced a $650 million, six-year contract with an unnamed US technology company covering product development, cloud operations, and support - suggesting Persistent's AI-services ambitions extend in both organic and inorganic directions simultaneously.