Persistent Systems Ltd announced its largest acquisition to date with the purchase of German digital engineering firm Nagarro, targeting combined revenues of about $2.9 billion. The deal, expected to close by March 2027, aims to advance Persistent’s European expansion and set a path to $5 billion in annual revenue by 2031, according to livemint.com.
The acquisition will elevate Persistent Systems two ranks to become India’s seventh-largest IT services company. During a recent analyst call, company management highlighted Nagarro’s role as a key SAP implementation partner, complementing Persistent’s enterprise resource planning capabilities. The combined entity will operate as the Persistent-Nagarro Group, with management addressing queries on debt repayment plans tied to the transaction, per livemint.com.
This deal marks a significant move in India’s IT services sector, where consolidation is reshaping market dynamics. Comparable large acquisitions have propelled firms into higher revenue brackets and expanded their global footprints. Persistent’s strategy to integrate Nagarro’s digital engineering expertise aligns with broader industry trends emphasizing cloud, AI, and enterprise solutions. The combined $2.9 billion revenue positions the group competitively among India’s top IT firms, as reported by livemint.com.
The acquisition is slated to finalize by March 2027, after which the Persistent-Nagarro Group will begin operations under the unified brand. Persistent Systems aims to leverage this scale to reach $5 billion in annual revenue by 2031, setting a clear financial target for the combined entity, according to livemint.com.