Persistent Systems has announced its acquisition of German digital engineering company Nagarro in a landmark move that will create a global AI-led digital engineering powerhouse with a revenue run-rate of approximately $2.9 billion. The strategic takeover significantly strengthens Persistent’s international presence while enhancing its capabilities in artificial intelligence, digital engineering, cloud computing, enterprise modernisation, and customer experience solutions.
The company described the proposed combination as a strong strategic fit, bringing together Persistent’s leadership in AI-led engineering, extensive North American presence, and deep technology partnerships with Nagarro’s established European business, complementary industry expertise, AI capabilities, and enterprise resource planning (ERP) and customer experience (CX) delivery strengths.
Following the merger, the combined organisation will employ more than 46,000 professionals across over 40 countries, making it one of the largest AI-led digital engineering firms globally. The workforce will include approximately 37,000 employees in India, nearly 3,500 in North America, and around 3,000 in Europe, thereby expanding the company’s global delivery network and strengthening its ability to serve multinational enterprises.
As part of the transaction, Galaxy Germany Holding SE, a wholly owned direct subsidiary of Persistent Systems Limited, has launched a voluntary public takeover offer for all outstanding shares of Nagarro SE at a cash consideration of EUR 81 per share.
The acquisition follows the signing of a Business Combination Agreement, which outlines the framework for integrating the two organisations. Additionally, Nagarro’s Management Board and Supervisory Board have expressed their support for the proposed transaction and intend to recommend that shareholders accept the offer after reviewing the official offer document.
Furthermore, Galaxy Germany has entered into a fully binding share purchase agreement with Lantano Beteiligungen, the investment vehicle of Nagarro’s largest shareholder. Under the agreement, Lantano will sell its entire stake of approximately 21% in Nagarro to Galaxy Germany at the offered price, providing significant momentum to the acquisition process.
According to the company, the proposed merger aims to establish a globally diversified AI-led digital engineering and enterprise modernisation leader with a strong operational presence in North America and Europe while maintaining meaningful exposure across other international markets.
Moreover, the combined Persistent-Nagarro entity will strengthen its ability to support multinational enterprises that require integrated AI, digital engineering, enterprise resource planning, customer experience, cloud, and data solutions through both local and global delivery models. The expanded capabilities will enable the company to deliver end-to-end digital transformation services while addressing the growing demand for AI-powered enterprise solutions across industries.
The acquisition also aligns with Persistent Systems’ long-term growth strategy of expanding its global footprint and strengthening its position in high-growth technology segments. By integrating Nagarro’s European expertise with Persistent’s AI-driven engineering capabilities, the company aims to enhance innovation, accelerate digital transformation initiatives, and create greater value for enterprise customers worldwide.
