Persistent eyes €1.1-bn Nagarro buyout to boost AI engineering capabilities

Pune-headquartered Persistent Systems has announced a voluntary public takeover offer to acquire all outstanding shares of German digital engineering company Nagarro SE for €81 per share, valuing the company at €1.1 billion (around ₹11,820 crore).

The offer, made through Galaxy Germany Holding SE, a wholly owned subsidiary of Persistent, follows the signing of a Business Combination Agreement between the two companies.

If completed, the transaction will create a $2.9-billion AI-led digital engineering and enterprise modernisation company with more than 46,000 employees across over 40 countries, significantly strengthening Persistent's presence in Europe while expanding its capabilities in AI, cloud, data, ERP, customer experience and digital engineering.

Munich-headquartered Nagarro reported €1 billion in calendar year 2025 revenue and employs around 18,500 people globally, serving customers across industrial, consumer, telecom, media, technology and BFSI sectors.

The combined entity aims to address growing enterprise demand for AI-driven transformation by offering integrated engineering and technology services across North America, Europe and other global markets.

"AI is reshaping our industry at an unprecedented pace. Success will belong to companies that combine deep technical capability with global reach, while continuing to attract, develop and inspire exceptional people," said Anand Deshpande, Founder, Chairman and Managing Director of Persistent Systems.

"Together, Persistent and Nagarro will be better positioned to help our clients navigate this new era, create greater opportunities for our teams, and build an organisation that will endure for many years to come," he added.

Persistent CEO and Executive Director Sandeep Kalra described the acquisition as a strategic milestone in the company's global expansion.

"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," Kalra said.

The acquisition marks one of the largest outbound deals by an Indian IT services company and underscores the sector's increasing focus on scaling AI capabilities through strategic acquisitions as enterprises accelerate investments in digital engineering and AI-led transformation.