Persistent Systems and Germany-based Nagarro have signed a business combination agreement to create the Persistent–Nagarro Group, bringing together their digital engineering capabilities in a move that is expected to establish one of the industry’s largest AI-focused technology services companies.

Persistent Systems and Nagarro have entered into a Business Combination Agreement that will bring the two technology companies together under a single global organisation focused on AI-led digital engineering and enterprise transformation.

The proposed combination is expected to create a company with an annualised revenue run rate of approximately US$2.9 billion and a workforce of more than 46,000 employees operating across over 40 countries. The combined organisation will have a significant delivery presence in India alongside operations across North America, Europe, Asia-Pacific, the Middle East and other international markets.

The agreement is part of Persistent’s broader strategy to expand its global footprint and strengthen its capabilities in artificial intelligence, cloud technologies, digital engineering and enterprise modernisation. By integrating Nagarro’s engineering expertise with Persistent’s platform-led transformation services, the combined group aims to broaden its technology offerings across multiple industries.

Under the transaction, Persistent, through its wholly owned subsidiary Galaxy Germany Holding SE, will launch a voluntary public takeover offer for all outstanding Nagarro shares at EUR 81 per share in cash, subject to regulatory approvals and customary closing conditions. Nagarro’s management and supervisory boards have expressed their support for the transaction and intend to recommend that shareholders accept the offer after reviewing the formal offer documentation.

Both companies indicated that the merger is intended to enhance their ability to serve enterprise customers seeking large-scale AI adoption, software engineering and digital transformation programmes. The combined business is expected to leverage complementary industry expertise, delivery capabilities and innovation ecosystems while expanding its reach across global markets.

If completed, the transaction would represent one of the largest cross-border acquisitions undertaken by an Indian IT services company. It also reflects the increasing consolidation taking place within the global technology services sector as companies invest in larger engineering platforms to meet growing demand for AI-enabled digital transformation.

The transaction remains subject to regulatory approvals and other customary closing requirements before it can be finalised.

Source: This article is based on an official press release issued by Persistent Systems
Persistent and Nagarro sign Business Combination Agreement to Form the Persistent – Nagarro Group