Persistent Systems to Acquire Nagarro in $2.9 Billion AI-Led Digital Engineering Deal

Persistent Systems, a leading provider of AI-led digital engineering solutions, has announced its plans to acquire Nagarro, a German digital engineering company, in a move that will create a global AI-led digital engineering powerhouse with a revenue run-rate of $2.9 billion.

Persistent Systems to Acquire Nagarro in $2.9 Billion Deal

The acquisition is expected to create a global AI-led digital engineering powerhouse with 46,000 plus employees in more than 40 countries, including about 37,000 in India, nearly 3,500 in North America, and around 3,000 in Europe.

The combined entity will have a strong presence in North America and Europe, with a meaningful presence in the rest of the world, making it a scaled, globally diversified AI-led digital engineering and enterprise modernisation powerhouse.

Key Benefits of the Acquisition

The acquisition is expected to bring together Persistent’s AI-led engineering leadership, North American scale, and partnership depth with Nagarro’s European business, complementary verticals, AI expertise, and ERP and CX delivery.

Market Impact and Details

• The combined entity will have a revenue run-rate of $2.9 billion, making it one of the largest digital engineering companies in the world.
• The acquisition is expected to create a global AI-led digital engineering powerhouse with a strong presence in North America and Europe.
• The combined entity will have a diverse range of services, including AI, engineering, enterprise resource planning, CX, data, and cloud capabilities.

Key Takeaways

• The acquisition will create a global AI-led digital engineering powerhouse with a revenue run-rate of $2.9 billion.
• The combined entity will have a strong presence in North America and Europe, with a meaningful presence in the rest of the world.
• The acquisition is expected to bring together Persistent’s AI-led engineering leadership with Nagarro’s European business and complementary verticals.

FAQs

What is the proposed consideration for the acquisition?

The proposed consideration is EUR 81 per share, as announced by Galaxy Germany Holding SE, a wholly-owned direct subsidiary of Persistent Systems Limited.

Who supports the transaction?

Nagarro’s management and supervisory board support the transaction and intend to recommend acceptance of the offer to their shareholders, subject to their review of the offer document.

What is the expected timeline for the acquisition?

The acquisition is expected to be completed in the coming months, subject to regulatory approvals and other customary conditions.

Conclusion

The acquisition of Nagarro by Persistent Systems is a significant development in the digital engineering space, creating a global AI-led digital engineering powerhouse with a revenue run-rate of $2.9 billion.

The combined entity will have a strong presence in North America and Europe, with a diverse range of services, including AI, engineering, enterprise resource planning, CX, data, and cloud capabilities.

As a leading provider of AI-led digital engineering solutions, Persistent Systems is well-positioned to support multi-region enterprise clients requiring integrated AI, engineering, enterprise resource planning/CX, data, and cloud capabilities across local and global delivery models.