Persistent and Nagarro Join Forces to Pioneer AI-led Digital Engineering Solutions

In a remarkable development within the technology sector, Persistent Systems has announced the signing of a Business Combination Agreement with Nagarro, a leading name in digital engineering based in Munich. This strategic alliance aims to combine the strengths of both organizations to create the Persistent - Nagarro Group, poised to become a global leader in AI-led digital engineering services.

The Acquisition Announcement

Persistent has made waves in the market by declaring its intention to launch a voluntary public takeover offer for all outstanding shares of Nagarro, valued at EUR 81 per share. This all-cash deal signifies a generous premium of approximately 140% over Nagarro’s closing price as of June 25, 2026, and nearly 94% over the average share price over the last three months. Such an attractive offer underscores Persistent's commitment to expanding its influence and operations in the digital engineering landscape.

The move has garnered the support of Nagarro's Management and Supervisory Boards, who intend to recommend this offer to shareholders, reinforcing their belief in the potential synergistic benefits of this partnership. In fact, Persistent has already secured around a 21% stake in Nagarro, with the largest shareholder pledging their entire stake under a binding agreement.

A Perfect Strategic Fit

Combining Persistent’s robust AI-driven engineering capabilities with Nagarro’s extensive European footprint and deep industry expertise creates a formidable entity. This new powerhouse will employ over 46,000 professionals across more than 40 countries, establishing a notable revenue run-rate near USD 2.9 billion. The collaboration is expected to be mutually beneficial, enhancing services across various sectors including industrial, consumer, telecommunications, and financial services.

Dr. Anand Deshpande, founder and Managing Director of Persistent Systems, expressed optimism about the merger, stating, “At Persistent, we believe that great companies are built over decades, not quarters. This partnership is a reflection of our shared values and commitment to innovation, enabling us to navigate the rapid changes prompted by AI.”

Sandeep Kalra, CEO of Persistent, echoed this sentiment, pointing out that the combination not only strengthens their capabilities in North America but also enhances their potential to assist clients in their AI and digital transformation journeys.

Broader Implications for Employees and Clients

The merger promises extensive growth opportunities for employees of both companies. By merging cultures and operational strategies, staff will benefit from broader career horizons, exposure to cutting-edge technologies, and participation in large-scale transformation projects. Persistent has established a reputation for valuing its workforce, as evidenced by numerous awards recognizing its commitment to employee satisfaction and well-being.

For clients, the new arrangement offers comprehensive access to innovative solutions that amalgamate the strengths of both entities. With improved engineering platforms and extensive service offerings, clients will be able to benefit from a more integrated delivery model, ensuring enhanced performance and measurable outcomes. This collaboration stands to reinforce their standing in the market by providing a singular partner capable of end-to-end solutions.

Future Steps and Market Position

The public takeover offer requires a minimum acceptance threshold of 50% plus one share from all issued Nagarro shares. Following the approval of the offer document by BaFin, Persistent is expected to launch the official offer soon. There are plans to further streamline operations after the acquisition, potentially including Nagarro's delisting from the Frankfurt Stock Exchange to facilitate a more integrated governance structure.

Both companies are well-regarded brands in their fields, and the combined entity aims to uphold the legacy of each brand while contributing to significant advancements in digital engineering. As the AI landscape evolves, the Persistent - Nagarro Group aspires to lead innovation in technology-driven solutions that adapt to the fast-paced market dynamics.

In conclusion, the merger between Persistent Systems and Nagarro marks a significant milestone that promises to reshape the future of digital engineering and AI services, making it an exciting time for stakeholders in both organizations. The collaboration is fundamentally about growth, innovation, and paving the way for a future where technology plays a central role in business success.