Persistent Systems to acquire Nagarro for €1.1 billion

Indian technology services firm Persistent Systems has announced a definitive agreement to acquire German digital engineering company Nagarro SE in a deal valued at approximately 1.1 billion euros. The acquisition, structured as a voluntary public takeover offer, aims to create one of the world's largest AI-led digital engineering firms.

Under the terms announced on Saturday, Persistent, through its wholly-owned subsidiary Galaxy Germany Holding SE, will offer 81 euros in cash for each Nagarro share. This price represents a premium of about 140 percent over Nagarro's closing share price on June 25. Persistent has already secured a binding agreement to purchase an approximately 21 percent stake in Nagarro from its largest shareholder, Lantano Beteiligungen GmbH.

The management and supervisory boards of Nagarro have declared their support for the transaction and intend to recommend shareholders accept the offer, pending review of the formal offer document. The deal remains subject to regulatory approvals, including from Germany's financial regulator BaFin, and requires acceptance by shareholders holding at least 50 percent plus one share of Nagarro.