en.Wedoany.com Reported - Persistent Systems has launched a voluntary public takeover offer to acquire all outstanding shares of German digital engineering company Nagarro SE through its subsidiary Galaxy Germany Holding, marking one of the largest overseas acquisitions ever by an Indian IT services company.
Upon completion of the transaction, a technology services company will be created with an annualized revenue run rate of approximately $2.9 billion, a total workforce exceeding 46,000 employees, and operations spanning more than 40 countries. The combined entity has over 37,000 employees in India, more than 3,500 in North America, and over 3,000 in Europe.
The offer price represents a premium of approximately 140% over Nagarro's undisturbed closing price on June 25, 2026, and nearly 94% above its three-month volume-weighted average price (VWAP). Persistent Systems has already secured approximately 21% of Nagarro's shares. The largest shareholder, Lantano Beteiligungen GmbH, has agreed under a binding agreement to tender its entire stake.
Nagarro's management board and supervisory board support the proposal and plan to recommend that shareholders accept the offer after reviewing the final offer document. This acquisition will significantly expand Persistent's footprint in Europe, with the region expected to contribute approximately 22% of the combined company's revenue post-transaction, up from 9% previously. North America will remain its largest market, accounting for about 62% of revenue.
The combined business will expand the total addressable market (TAM) to over $1.4 trillion. In the banking, financial services, and insurance (BFSI), healthcare and life sciences (HLS), and technology, media, and telecommunications (TMT) sectors, annual revenue will exceed $500 million. Revenue in the industrial sector will surpass $400 million, and in the consumer sector, over $300 million.
The offer will proceed only if shareholders representing at least 50% plus one share of Nagarro's total outstanding shares accept. The formal offer will be launched after approval of the offer document by the German financial regulator BaFin. Persistent plans to delist Nagarro's shares from the Prime Standard segment of the Frankfurt Stock Exchange as soon as legally permissible, but does not intend to enter into a domination and/or profit and loss transfer agreement (DPLTA) within two years of the transaction's completion.
Manas Human, co-founder and CEO of Nagarro, stated that both companies have grown from humble beginnings into strong technology enterprises with highly qualified talent and deep client relationships; in the era of the AI revolution, scale and strength will bring significant opportunities. Sandeep Kalra, CEO of Persistent Systems, said that the two companies are highly aligned strategically and culturally, and the merger will strengthen their position in Europe, expand their scale in North America, and enhance their ability to help clients accelerate their AI and digital transformation journeys.
In the March 2026 quarter, Persistent reported revenue of $436 million, and for fiscal year 2026, revenue of $1.654 billion. The company expects quarterly revenue to reach $500 million by the March 2027 quarter, implying an annualized revenue run rate of $2 billion.
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