Artificial intelligence is reshaping the global IT services industry, prompting companies to strengthen their capabilities through strategic acquisitions. Joining this trend, Pune-based Persistent Systems has announced its biggest-ever acquisition, agreeing to acquire Germany’s digital engineering firm Naga
rro SE in an all-cash deal valued at €1.1 billion (around ₹11,820 crore). The move is expected to create a global AI-led digital engineering powerhouse with a stronger presence across Europe and North America.
The acquisition comes as enterprises accelerate investments in artificial intelligence, cloud computing, data, ERP and customer experience solutions. Nagarro brings a strong European footprint, with over 18,500 employees across 40 countries and €1 billion in revenue in CY2025, significantly expanding Persistent’s global reach.
Once completed, the combined entity is expected to generate $2.9 billion in annual revenue, employ more than 46,000 professionals across over 40 countries, and serve an expanded client base of more than 350 enterprises. Persistent said the deal will significantly strengthen its presence in Europe, increasing the region’s contribution to the combined company’s revenue from 9% to about 22%, while North America will continue to account for roughly 62%.
The transaction has received backing from Nagarro’s largest shareholder, Lantano Beteiligungen GmbH, while the company’s management and supervisory boards have also expressed support. Subject to regulatory approvals and shareholder acceptance, the acquisition is expected to close in the fourth quarter of CY2026 or the first quarter of CY2027.
Persistent’s leadership described the acquisition as a defining milestone that combines engineering excellence, global scale and complementary AI capabilities to help clients accelerate digital transformation. As AI continues to reshape enterprise technology, the company believes the combined organisation will be better positioned to meet the growing global demand for next-generation engineering and IT services.
Nandita Sharma
