Persistent Systems Secures 94.04% of Nagarro After Takeover Offer

Persistent Systems has secured about 94.04% of Germany-based Nagarro SE after its voluntary public takeover offer closed, the Pune-headquartered IT services company said in a statement on October 9, 2026.

Shareholders tendered a total of 8,903,259 Nagarro shares, or about 71.94% of the share capital and voting rights, across the initial and additional acceptance periods. Together with the roughly 22.10% stake already secured from Nagarro’s largest shareholder, Persistent’s holding is far above the minimum acceptance threshold of 50% plus one share.

Deal structure

The offer was made through Galaxy Germany Holding SE, a wholly owned subsidiary of Persistent, at €81 per Nagarro share in cash. The price represented a premium of about 140% to Nagarro’s closing price on June 25, 2026, and about 93% to its three-month volume-weighted average price, according to the company.

The transaction values Munich-based Nagarro at about €1.1 billion. Persistent had earlier secured about 22% of Nagarro through a binding share purchase agreement with Lantano Beteiligungen GmbH, the investment vehicle of Nagarro’s largest shareholder.

During the initial acceptance period, which ended on September 17, 7,568,145 shares were tendered. A further 1,335,114 shares came in during the additional acceptance period, which closed at midnight CEST on October 6.

Squeeze-out on the table

Persistent said it intends to pursue a squeeze-out of the remaining minority shareholders once the deal closes, in line with a plan to take Nagarro private. The company added that no final decision has been taken and that details will be shared later. It has earlier stated its intent to delist Nagarro from the Prime Standard segment of the Frankfurt Stock Exchange.

Closing is expected by the end of the first quarter of calendar 2027, with only a limited number of regulatory approvals still pending, the company said. The offer is governed by German takeover law, and the offer document was filed with the Federal Financial Supervisory Authority (BaFin).

Sandeep Kalra, CEO and Executive Director of Persistent Systems, described the acceptance level as “a clear endorsement of the strategic logic” behind the combination.

Europe push

The acquisition is aimed at expanding Persistent’s presence in Europe. The combined business is expected to have an annual revenue run rate of about $2.9 billion and more than 46,000 employees, with Europe’s share of revenue rising to about 22% from about 9%.

Nagarro brings digital engineering, ERP and customer experience capabilities, which Persistent plans to combine with its own strengths in AI, cloud and software engineering. Persistent has set a target of $5 billion in revenue by March 2031.

Persistent shareholders approved the acquisition, along with related financing arrangements and a corporate guarantee, at the company’s annual general meeting on August 3, 2026. The focus now shifts to regulatory clearances and the integration of the two companies over the coming quarters.