Persistent Systems is set to become the seventh-largest tech services firm in India after increasing its stake in German software engineering firm Nagarro to 94%, enabling a buyout of remaining shareholders under German law. The move follows Persistent's $1.3 billion acquisition announced in June and clears the way for full integration of Nagarro into its operations, the company said on October 9, 2026.
The acquisition unfolded in three phases, starting with Persistent's €81-a-share bid in June, which secured 83% ownership by September 17. A subsequent secondary offer raised the stake to 94%, with Persistent paying approximately $1.1 billion for the shares, including $824 million from tendered shares. The company has not yet made a final decision on the squeeze-out of minority shareholders but confirmed plans to proceed once closing is complete.
This acquisition adds nearly $1 billion in annual revenue and significantly expands Persistent's footprint in Europe, which will represent a larger share of the combined business. The deal is expected to elevate Persistent's position in the Indian IT industry rankings, highlighting the company's strategic focus on growth through scale and geographic diversification. Investors are now focused on execution, debt repayment, and realizing the acquisition's anticipated benefits.
Persistent's progress toward fully acquiring Nagarro marks a key milestone in its expansion strategy. The company’s press release on October 9 confirmed the stake increase and plans to squeeze out remaining shareholders, positioning Persistent as a major player in the global tech services market.