Key Takeaways
- The acquisition values Nagarro at €81 per share with 140% premium
- A 21% stake has been secured ahead of the full takeover offer
- The deal targets a $5 billion revenue goal by FY31 for Persistent
Shares of Persistent Systems declined by more than 9% to a 52-week low of ₹4,400.50 after the company announced plans to launch a voluntary public takeover offer for all outstanding shares of Nagarro at €81 per share. The market reaction reflected investor assessment of valuation, deal size, and integration factors.
Acquisition Structure And Financial Metrics
The proposed all-cash offer represents a premium of about 140% to Nagarro’s undisturbed closing price on June 25, 2026, and approximately 94% to its 3-month volume-weighted average price. Persistent Systems has already secured an approximate 21% stake in Nagarro, with the largest shareholder committing its entire holding under a binding agreement.
Nagarro’s Management and Supervisory Board has expressed support for the transaction and intends to recommend acceptance of the offer. Members of the Management Board have also indicated their intention to tender their shares. The acquisition plan includes a proposal to acquire 100% ownership and delist Nagarro from the German stock exchange.
Nagarro operates with around 18,500 employees across more than 40 countries. The company reported revenue of €1 billion in calendar year 2025. Its business spans industrial, consumer, technology, media and telecom, and banking and financial services sectors.
Financial estimates indicate that Nagarro’s FY26 revenue stands at about $1.14 billion, representing nearly 69% of Persistent Systems’ projected FY26 revenue. The transaction implies an enterprise value of about $1.4 billion, with valuation multiples of 1.2x EV to sales, 9.6x EV to EBITDA, and 13x price to earnings.
Brokerage Views And Growth Outlook
Brokerage assessments of the transaction remain divided based on valuation and growth expectations. Some estimates suggest the acquisition could support Persistent Systems in achieving its stated FY31 revenue target of $5 billion. The deal is also expected to be about 6% earnings per share accretive based on current projections.
Other assessments indicate that while the acquisition strengthens the company’s presence in Europe and improves scale across key verticals, the valuation appears elevated when compared with historical growth trends and global benchmarks. Growth projections for the combined entity are estimated to remain in the low double-digit % range in the near term.
Nagarro’s geographic revenue distribution includes approximately 35% from North America, 30% from Central Europe, 13% from the rest of Europe, and 23% from other regions. The company reported an adjusted EBITDA margin of 13.8% and an EBIT margin of 8.3% in calendar year 2025. Margins improved to 15.6% and 12.1%, respectively, in the first quarter of calendar year 2026.
For Indian businesses, the transaction highlights the increasing scale of outbound acquisitions in the technology sector. It also reflects the importance of geographic diversification, revenue expansion, and operational integration in cross-border deals. Market participants are expected to monitor execution, margin alignment, and revenue growth following completion of the proposed acquisition.
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