Persistent Systems has agreed to acquire all shares of Germany-based digital engineering firm Nagarro in a deal worth approximately €1.27bn ($1.45bn).

The Indian publicly listed technology company has launched a voluntary public takeover offer at €81 per share in cash. This represents a premium of about 140% to Nagarro's undisturbed closing share price on 25 June 2026 and roughly 94% to its three-month volume-weighted average price.

Persistent has already secured an approximately 21% stake in Nagarro through a share purchase agreement with Lantano Beteiligungen, which is the latter's largest shareholder. The agreement was signed on the day of the announcement and is subject to standard regulatory approvals.

The offer is being made through Galaxy Germany, a Persistent subsidiary, for all outstanding Nagarro shares.

Members of Nagarro's management board have declared their intention to accept the offer and tender their shares. In addition, Nagarro's management board and supervisory board support the transaction and intend to recommend that shareholders accept the offer, pending their review of the official offer document.

The proposed acquisition forms part of Persistent's stated strategy to expand its digital engineering and AI-led transformation capabilities in Europe. The companies have entered into a business combination agreement, aiming to combine and operate as the Persistent × Nagarro Group upon completion.

Pending regulatory approvals and acceptance from shareholders holding at least 50% plus one share of Nagarro, including the stake already secured by Persistent, the transaction can proceed. Completion is expected by either the fourth quarter of 2026 or the first quarter of 2027.

The combined group is anticipated to become the world's second-largest digital engineering company by revenue and India's seventh-largest technology services firm.

Persistent has stated the group would achieve an annualised revenue run-rate of over $2.9bn, employing more than 46,000 staff across 40 countries. After the planned completion, North America would contribute over $1.7bn in revenue, Europe more than $600m, and other regions over $400m.

The company projects sector-specific revenues of over $500m each for banking, financial services and insurance, healthcare and life sciences, and technology, media and telecommunications. It expects industrial revenue to be above $400m, consumer revenue at over $300m, and public sector plus education revenue to surpass $100m.

Nagarro employs around 18,500 people in 40 countries and had reported about €1bn in revenue for 2025. Its client relationships span key sectors, such as four of Europe's five leading automotive manufacturers, as well as a presence among top banks and healthcare firms in Europe and the US.