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Persistent and Nagarro's Strategic Merger: Elevating AI-Driven Digital Engineering

In an ambitious move to reshape the landscape of digital engineering, Persistent Systems and Nagarro have signed a Business Combination Agreement. This collaboration is set to create the Persistent - Nagarro Group, a powerhouse focused on AI-led digital engineering. The firms will jointly work towards enhancing their capabilities, thereby bolstering their position in the industry.

The Merger's Financials

Persistent has made a definitive proposal to acquire all outstanding shares of Nagarro, offering a cash price of EUR 81 per share. This deal represents a staggering premium of approximately 140% relative to Nagarro's closing price from June 25, 2026. Such a premium not only heralds attractive returns for Nagarro's shareholders but also showcases Persistent's confidence in the value of the combined entity.

The merger is backed robustly by Nagarro's Management and Supervisory Board, who have pledged their support for the transaction. Most notably, Nagarro’s largest shareholder, through a binding agreement, has committed to selling a substantial portion of its stake—around 21%—to Persistent. In addition, key members of Nagarro’s Management Board have expressed their intent to accept the offer, indicating a strong consensus around this merger.

Complementing Strengths of Persistent and Nagarro

Nagarro is recognized as a leader in digital engineering with a notable presence in over 40 countries and a workforce of approximately 18,500 employees. The company has established strong roots in multiple sectors, including industrial, consumer, technology, media and telecommunications (TMT), as well as banking, financial services and insurance (BFSI). With a revenue of about EUR 1 billion in fiscal year 2025, Nagarro brings a wealth of experience and market presence to the table.

By joining forces, Persistent, known for its AI-driven engineering leadership and strong North American footprint, will complement Nagarro’s rich European business expertise. The projected combined entity is expected to achieve a remarkable revenue run rate of approximately USD 2.9 billion, managing a workforce exceeding 46,000 across the globe.

Enhanced Business Opportunities and Client Benefits

This merger is not just a financial agreement; it is strategically crafted to forge a new era of growth and innovation. The combined expertise of both companies will provide clients with an unparalleled range of services in AI, engineering, enterprise resource planning (ERP), customer experience (CX), and data management. This appropriate blend ensures that clients will benefit from integrated solutions that address complex demands in a rapidly evolving technological landscape.

Persistent's CEO, Sandeep Kalra, emphasized the transformational impact of this merger, stating, "The next wave of enterprise transformation will be defined by AI, engineering excellence, and global scale... Nagarro is an exceptional strategic and cultural fit for Persistent." Such synergy will enable both companies to navigate the upcoming AI-driven changes more effectively, offering immersive and cutting-edge solutions to clients operational across various industries.

A Vision for the Future

Dr. Anand Deshpande, Persistent’s founder, underscored the shared values that exist between both companies. He expressed optimism about the merger, stating, "Those principles have guided us since 1990… that together we can create something even stronger." Such sentiments reflect the overarching ambition to cultivate a robust organizational culture founded on innovation and client trust.

The merger will create an expansive platform positioned to serve multi-regional enterprise clients, enabling seamless integration of AI and digital engineering capabilities through localized and scalable solutions.

Next Steps in the Merger

The proposed offer will require a minimum acceptance threshold of over 50% of Nagarro’s shares to proceed. Following regulatory approvals, the takeover is scheduled for initiation, anticipated to successfully finalize by the end of 2026 or early 2027. Persistent has committed significant financing from Barclays to support this acquisition while maintaining conservative leverage limits post-transaction.

As this merger unfolds, both companies strive to preserve their unique identities and cultures, ensuring that they continue to embody the trust and values they have established over the years.

In conclusion, the Persistent - Nagarro merger signifies a pivotal step towards leading the industry in AI-driven transformation, promising innovative solutions and enduring growth for stakeholders and clients alike. The future is poised to be an exciting chapter for both firms as they embark on this transformative journey together.