First Read: Persistent Systems "Acquisition of Nagarro announced" (Buy)

研报英文原文证据摘录

First Read: Persistent Systems "Acquisition of Nagarro announced" (Buy)

Global Research

29 June 2026ab

First Read

EquitiesPersistent Systems

Acquisition of Nagarro announced India

Diversified Technology Services

12-month rating Buy

Persistent announces acquisition of Nagarro

Persistent Systems has announced a voluntary public takeover offer to acquire Nagarro 12m price target Rs5,995.00

SE (Munich-headquartered digital engineering firm with cEUR1bn CY25 revenue and

c18.5k employees) at EUR81/share in cash, implying a c140% premium to latest closing

Price (29 Jun 2026) Rs4,840.45

price and a total deal size of cUS$1.2bn. Persistent has already secured a c21% stake via

a binding deal with the largest shareholder, and the overall offer is conditional on >50% RIC: PERS.BO BBG: PSYS IB

acceptance and regulatory approvals (BaFin), with expected closing in Q4CY26 / Trading data and key metrics

Q1CY27. The deal is expected to be funded by leverage, with the combined entity

52-wk range Rs6,562.90-4,529.65

aiming to de-lever within 2 years.

Market cap. Rs743b/US$7.88b

Shares o/s 154m (ORD)

While the deal appears complimentary..

Free float 68%

Based on the details in the announcement, the deal appears complimentary. While

Avg. daily volume ('000) 665

Persistent brings AI-led engineering strength, hyperscaler partnerships, and North

American scale, Nagarro adds European enterprise access, ERP/CX focus, and industrial/ Avg. daily value (m) Rs3,370.3

automotive exposure. Post the deal closure, the geography mix would improve Common s/h equity (03/26E) Rs78.4b

meaningfully, with Europe revenue contribution expanding from c9% to c22%, P/BV (03/26E) 9.6x

ROW from 10% to 16%, and North America concentration reducing from c80% to Net debt to EBITDA (03/26E) NM

62%.