Nagarro

IT Services · Software Engineering · M&A

Acquisition

Persistent Systems hits 94% stake in Nagarro, clearing $1.3B takeover

Crossing Germany's 90% ownership threshold hands Persistent the legal power to force out remaining shareholders and delist Nagarro.

• Persistent Systems secured an additional 10.79% stake in Nagarro SE during the extended offer period, lifting its total holding to 94.04% and clearing the 90% threshold needed to force a squeeze-out of minority shareholders under German law.
• Nagarro is a German software engineering firm with about $999 million in revenue and roughly 18,500 employees; Persistent is a Pune-based IT services company that announced the $1.3 billion acquisition in June 2026.
• The purchase was funded with roughly $1.1 billion in cash, including $824 million from tendered shares and $253 million from Lantano Beteiligungen's stake sale, plus a €1.4 billion ($1.6 billion) Barclays loan due within 18 months.
• Persistent expects Europe's share of the combined business to roughly double from one-tenth to one-fifth of revenue, with the merged company projected to generate at least $2.7 billion in annual revenue.
• Persistent plans to initiate a squeeze-out of Nagarro's remaining minority shareholders after closing, merge the firm into its German entity, and delist it from the Frankfurt exchange by the end of Q1 2027.
• The deal would make Persistent India's seventh-largest IT services firm and is one of the largest cross-border buyouts by an Indian tech company, testing whether scale can offset the integration and dilution risks analysts have flagged.