Persistent Systems Acquires Majority Stake in Nagarro SE

Persistent Systems Limited has successfully garnered significant backing for its takeover bid of Nagarro SE, crossing the crucial 50% ownership threshold. The initial acceptance period saw a robust response from Nagarro shareholders, with approximately 61.15% of the company’s total share capital and voting rights tendered. This strong showing, combined with a pre-existing stake of 22.10% acquired from Lantano Beteiligungen GmbH, brings Persistent’s total control to a commanding 83.25%.

The offer, structured through its subsidiary Galaxy Germany Holding SE, provides Nagarro shareholders with a compelling cash consideration of EUR 81.00 per share. This valuation reflects a strategic move by Persistent to consolidate its position in the digital engineering and IT services sector, a market experiencing dynamic growth driven by digital transformation initiatives and the increasing demand for specialized technology expertise. The global digital engineering market is projected to reach hundreds of billions of dollars in the coming years, making strategic acquisitions like this pivotal for market leaders.

While the initial acceptance period has concluded, Nagarro shareholders still have an opportunity to participate. An additional two-week window, commencing September 23, 2026, and concluding on October 6, 2026, allows any remaining shareholders to tender their shares at the same attractive price. Persistent anticipates the transaction will be finalized by the end of the first quarter of fiscal year 2027, pending the resolution of a limited number of regulatory approvals.

The successful acquisition signals a significant consolidation within the IT services industry, particularly in the DACH region and India, where both companies have substantial operations. The integration of Nagarro's capabilities is expected to bolster Persistent's offerings in areas such as cloud, data, and AI-led digital engineering. This strategic alignment aims to create a formidable global entity capable of addressing complex client needs and capitalizing on emerging technological trends.

In line with its strategy to fully integrate Nagarro, Persistent intends to initiate the process of delisting Nagarro shares from the Frankfurt Stock Exchange's regulated market (Prime Standard). This move, once legally feasible, will transition Nagarro into a privately held entity under Persistent's umbrella. While this may impact the liquidity of Nagarro shares and its inclusion in indices like the SDAX, it is a common step following significant takeovers to streamline operations and strategic direction.

The leadership at Persistent views this acquisition as a critical step towards realizing their vision of a premier AI-led digital engineering powerhouse. Sandeep Kalra, CEO of Persistent Systems, emphasized the strategic rationale and the attractive value proposition offered to Nagarro’s stakeholders, expressing enthusiasm for the combined entity's future potential in the competitive global technology services arena.