Persistent Systems has acquired an 83.25% controlling stake in German IT firm Nagarro for EUR 81 per share. The company now plans to delist Nagarro from the Frankfurt Stock Exchange. Investors are weighing the potential for European expansion against the risks of large-scale integration and cash outflow.
Persistent Systems has significantly increased its control over the German IT services firm Nagarro, securing an 83.25% stake. This follows a voluntary public offer that concluded on September 17, 2026, where the Indian IT firm acquired an additional 61.15% interest. With this controlling majority, Persistent Systems has announced its intention to remove Nagarro from the Prime Standard segment of the Frankfurt Stock Exchange, effectively taking the company private.
Acquisition Terms and Timeline
The Pune-based IT company is proceeding with its offer price of EUR 81 per share for all outstanding stakes. Following the current development, shareholders who have not yet tendered their shares have a specific window to do so, running from September 23 to October 6, 2026. CEO Sandeep Kalra indicated that the offer provides existing shareholders an opportunity to exit at the set price. This acquisition is part of a larger plan that began earlier in June 2026, when Persistent Systems acquired an initial 22.10% stake from Lantano Beteiligungen GmbH.
Market Reaction and Investor Risks
Despite the push for growth, market sentiment appeared cautious on Tuesday, September 22, 2026. Shares of Persistent Systems declined 1.52% on the National Stock Exchange, closing at Rs 5,366.00. While the move helps the company gain deeper access to the European market and specialized digital engineering capabilities, investors are often wary of large cross-border acquisitions. The primary challenges for such deals typically involve the cost of acquisition, the risk of delays in integrating the two companies, and the potential impact on free cash flow in the near term. Integrating a foreign subsidiary into a domestic organizational structure requires significant management attention, and investors will be monitoring whether the company can maintain its profit margins while executing this consolidation.
Future Outlook
The company aims to complete the full integration of Nagarro into its operations by the end of the first quarter of 2027. The success of this move will depend on how effectively Persistent Systems can combine the European team with its existing business model. Moving forward, shareholders will likely track the final cost of the full acquisition, any updates on debt levels, and the performance of the newly acquired European business unit in upcoming quarterly financial reports.