Mumbai: Shares of Persistent Systems plunged nearly 11 percent on Monday after the company announced its plan to acquire Germany-based digital engineering firm Nagarro in a major international deal.
The stock dropped 10.91 percent on the BSE to Rs 4,312.15, touching its 52-week low. On the NSE, the shares fell 10.93 percent to Rs 4,312.
The sharp fall reflects investor concern over the acquisition size, possible integration challenges and near-term financial pressure.
Major Acquisition Deal
Persistent Systems said the acquisition will help create a global AI-led digital engineering powerhouse with a revenue run-rate of $2.9 billion.
The deal will be executed through Galaxy Germany Holding SE, a wholly-owned subsidiary of Persistent Systems.
The company has announced a voluntary public takeover offer for all outstanding shares of Nagarro at €81 per share in cash.
This follows the signing of a Business Combination Agreement between both companies.
Strategic Expansion
Persistent described Nagarro as a strong strategic fit for its business.
The company believes the acquisition will strengthen its presence in Europe while expanding capabilities in AI, digital engineering, enterprise resource planning (ERP), and customer experience solutions.
Persistent already has strong operations in North America, while Nagarro brings deep European market access and expertise across multiple industries.
Together, both companies aim to serve clients more effectively across technology-driven sectors.
Bigger Global Footprint
After the merger, the combined entity will employ more than 46,000 people across 40+ countries.
This includes around 37,000 employees in India, nearly 3,500 in North America, and about 3,000 in Europe.
Nagarro, headquartered in Munich, has around 18,500 employees and reported annual revenue of €1 billion in CY25.
Although the acquisition strengthens Persistent’s long-term growth story, the market’s immediate reaction shows investors remain cautious about execution risks and deal costs.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should consult financial advisors before making investment decisions.
