IT company Persistent Systems’ wholly-owned subsidiary, Galaxy Germany Holding SE, on Saturday announced a voluntary public takeover offer for all outstanding shares in German AI-led digital engineering company Nagarro to create a $2.9 billion global AI-led engineering powerhouse.

The offer, which follows the signing of a Business Combination Agreement (BCA) between Persistent and Nagarro, is at a cash consideration of EUR 81 per share.

The offer price represents a premium of 140 per cent to the undisturbed closing price on June 25, 2026, and 94 per cent to the three-month volume-weighted average price, per a Persistent statement.

Persistent will fund the transaction with committed financing from Barclays Bank of a nominal amount of EUR 1.4 billion, backed by Corporate Guarantee up to EUR 1.54 billion. Upon consummation, the leverage is expected to remain within conservative limits to meaningfully reduce over a 2-year period.

The Indian IT company intends to pursue a delisting of Nagarro shares from the regulated market (Prime Standard) of the Frankfurt Stock Exchange as soon as practicable and legally feasible.

Anand Deshpande, Founder, Chairman and Managing Director, Persistent Systems, said, “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.

“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.”

Manas Human, Co-Founder and CEO, Nagarro, observed that “With the AI revolution, we are entering an era that will reward companies like ours that already have a digital-, data- and AI-DNA. With the combined strengths of Persistent and Nagarro, we’ll be able to deliver the complex intelligence transformation programs that our clients are increasingly demanding – at scale, across industries, and across the world.”

The combined entity would house over 46,000 employees across more than 40 countries, including 37,000 employees in India, 3,500 employees in North America, and 3,000 employees in Europe.

Headquartered in Munich, Germany, Nagarro was founded by two Indians Vikram Sehgal and Manas Human (formerly Fuloria) in 1996. The latter, who remains in the company as a CEO, also serves as a Director at Wrig Nanosystems, a Delhi-based medical devices company. He is also the founder and trustee of Re-Imagining Higher Education Foundation that sponsors Plaksha University in Punjab, India.

Despite optimism expressed by Persistent and Nagarro, IT analysts businessline spoke with flagged the high premium for the acquisition, arguing that Nagarro with its mid-single digit growth does not come across as a major acquisition. Others stated that the acquisition was also encouraged by investors pushing for the excess money to be put towards acquisitions.

Published on June 27, 2026