Persistent Systems subsidiary Galaxy Germany Holding SE has successfully completed its initial public takeover bid for Nagarro SE, securing 61.15% more stake in the technology services firm during the acceptance period that ended on September 17, 2026. The company acquired 7,568,145 Nagarro shares, representing approximately 61.15% of the outstanding share capital, bringing its total ownership to 83.25% of Nagarro's share capital and voting rights. This acquisition exceeded the minimum threshold of 50% plus one share required under German takeover laws, marking a significant milestone in the consolidation process. Following the initial offer completion, Persistent Systems has announced an additional acceptance period from September 23 to October 6, 2026, giving remaining Nagarro shareholders a final opportunity to exit at the cash price of EUR 81.00 per share. The transaction is anticipated to close by the end of Q1 CY27, subject to a limited number of outstanding regulatory approvals.
The latest acquisition builds upon Persistent's existing position in Nagarro, which had already secured approximately 22.1% stake under a share purchase agreement with Lantano Beteiligungen GmbH. As reported by the company, together with the newly acquired shares from Lantano and the latest public offer, the combined ownership now represents approximately 83.25% of Nagarro's total share capital and voting rights. CEO Sandeep Kalra emphasized the strategic logic behind the combination, stating that the success of the offer confirms its appeal and the strategic rationale behind combining Persistent and Nagarro. The takeover offer was executed through Galaxy Germany Holding SE, a wholly-owned direct subsidiary of Persistent Systems. This EUR 1.27 billion deal represents one of the largest offshore-led IT service consolidation moves in recent years, valuing Nagarro at approximately EUR 1.27 billion.
The acquisition creates a $2.9 billion AI-led engineering powerhouse with more than 46,000 employees across over 40 countries. Nagarro is described as a Munich-headquartered leader in digital engineering with approximately 18,500 employees across 40+ countries, deep roots in industrial, consumer, TMT and BFSI verticals, and a total revenue of EUR 1 billion (CY25). As reported by the company, Persistent and Nagarro are positioned as a perfect strategic fit, combining 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 capabilities. The combination drastically reduces Persistent's 80.6% dependency on the North American market by building a robust European footprint, where Nagarro generated EUR 999.3 million in CY2025.
Following the completion of the public offer and adoption of a private strategy, Persistent Systems intends to delist Nagarro shares from trading on the Frankfurt Stock Exchange and other open markets as soon as practicable and legally feasible. The company has scheduled institutional investor sessions on September 21 and 22, 2026, engaging with domestic and global funds following the Nagarro threshold confirmation. Additionally, the company was awarded the Databricks Brickbuilder Specialization for BFSI on September 21, 2026, to advance governed AI applications in financial services. Under applicable German takeover laws, the additional acceptance period from September 23 to October 6, 2026, will provide remaining shareholders with a final opportunity to exit at the cash price of EUR 81.00 per share. The termination of admission to trading on the regulated market would result in Nagarro being excluded from the SDAX and a reduction in liquidity of Nagarro shares.
Last month, Persistent Systems reported solid Q1 FY27 performance with 16.1% YoY revenue growth in constant currency and EBIT margins at 16.0%. The company's revenue for Q1 FY27 stood at ₹4,303.2 crore, registering growth of 6.1% on a quarter-on-quarter basis, while net profit declined 8.7% sequentially to ₹483 crore. In dollar terms, revenue reached $452.4 million, up 3.8% sequentially, with constant currency growth of 4.1%. The company's order book for Q1 FY27 was $1,146.2 million in Total Contract Value (TCV) and $536.8 million in Annual Contract Value (ACV). While securing an 83.25% stake in Nagarro mitigates transaction closure risks, the premium valuation of EUR 81.00 per share and debt-financing costs could limit short-term upside, keeping the outlook balanced as investors shift focus from transaction closure risks to execution and operational integration.
