#Germany #Munich #Nagarro #AI Engineering #Persistent

Persistent and Nagarro Merge to Create a Leader in AI-Driven Digital Engineering

In a significant move for the tech industry, Persistent Systems and Nagarro have announced their intention to merge, creating a formidable player in the AI-driven digital engineering landscape. This strategic partnership is expected to leverage the strengths of both companies, aiming for better service delivery and innovation across the globe.

The deal revolves around a voluntary public offer by Persistent to acquire all outstanding shares of Nagarro at a price of €81 per share. This attractive offer represents a considerable premium of approximately 140% over Nagarro's closing price on June 25, 2026, and about 94% over the weighted average share price of the previous three months. Notably, Nagarro's board and supervisory board support the transaction, indicating a strong alignment in strategic vision between the two firms.

A Powerful Combination

Nagarro, headquartered in Munich, is known for its expertise in digital engineering and employs approximately 18,500 professionals in over 40 countries. The company has a robust presence in sectors such as technology, media, telecommunications, and financial services, boasting a revenue of approximately €1 billion in 2025. Conversely, Persistent Systems has developed its reputation as a leader in AI-driven engineering, with a significant footprint in North America and continuous growth in its service offerings.

The merger seeks to combine Persistent's leadership in AI with Nagarro's local knowledge and extensive client relationships. The envisioned Persistent-Nagarro group will be a global entity valued at approximately $2.9 billion, employing over 46,000 individuals across more than 40 countries.

Strategic Benefits for Stakeholders

The merger promises numerous advantages for all stakeholders involved. For shareholders, the cash offer embodies a fair valuation of Nagarro and is anticipated to result in an increase in earnings per share for Persistent's shareholders in the first year post-transaction. Employees from both entities will benefit from expanded career opportunities, exposure to cutting-edge technologies, and participation in large-scale transformation projects.

Customers will experience enhanced services through the combined capabilities in AI, ERP, and experience management, facilitated by stronger partnerships with leading tech firms. This consolidation is also set to improve the geographical balance of revenue, shifting the contributions from North America and Europe post-merger.

Next Steps Ahead

The public offer is subject to a minimum acceptance threshold of 50% plus one share of all existing Nagarro shares. Following regulatory approval from the German Federal Financial Supervisory Authority (BaFin), the offer is expected to launch in the near future. Persistent has made it clear that it does not plan to enter into a control agreement or a profit and loss transfer agreement for two years following the merger closure, emphasizing its commitment to maintaining Nagarro's autonomy during this period.

It’s important to note that this merger marks a strategic withdrawal from the public market for Nagarro, with Persistent intending to delist Nagarro shares from the Frankfurt Stock Exchange as soon as legally permissible.

Conclusion

The merger between Persistent and Nagarro signifies a forward-thinking approach to navigating the rapidly evolving digital landscape. By combining their expertise, both companies are poised to enhance their offerings significantly, ensuring they remain at the forefront of AI-driven engineering solutions. This move not only benefits their clients and stakeholders but also paves the way for future innovations in the tech industry.