Persistent Systems Limited has secured 83.25% ownership of Nagarro SE through its public takeover offer. The acceptance period, initially set to conclude on September 17, 2026, has been extended from September 23 to October 6, 2026.

The IT services firm notified the National Stock Exchange and BSE Limited regarding the status of the bid. The company stated that the condition set out in section 12.1.1 of the Offer Document was met upon the closure of the initial bid phase.

Offer Details

The public takeover offer was initially announced in a press release dated August 6, 2026. Following the initial expiry date, the acceptance window was revised to allow further participation, now closing on October 6, 2026.

Regulatory Filings

The update was filed with the Corporate Services departments of both exchanges. Amit Murari Atre, Company Secretary of Persistent Systems Limited, signed the communication digitally on September 18, 2026. The filing references the earlier intimation bearing number NSE & BSE / 2026-27 / 105.

Breakdown of Stake Acquisition

Persistent Systems secured a total of 7,568,145 shares, representing approximately 61.15% of Nagarro's outstanding share capital (excluding treasury shares) during the initial acceptance period ending September 17, 2026. This tendered stake was combined with a pre-existing holding of approximately 22.10% acquired via a share purchase agreement with Lantano Beteiligungen GmbH. Together, these holdings constitute the aggregate 83.25% stake, exceeding the minimum acceptance threshold of 50% plus one share required under the German Securities Acquisition and Takeover Act (WpÜG).

Shareholders who have not yet tendered their shares may still accept the offer at EUR 81.00 per share during the additional acceptance period running from September 23 to October 6, 2026.

Strategic Implications and Delisting Plans

Following the successful acquisition, Persistent intends to pursue a delisting of Nagarro shares from the regulated market (Prime Standard) of the Frankfurt Stock Exchange as soon as practicable and legally feasible. This move aims to take Nagarro private, which will result in its exclusion from the SDAX index and a reduction in liquidity for Nagarro shares. The company expects the transaction to close by the end of Q1 CY27, subject to limited outstanding regulatory approvals.

Sandeep Kalra, Chief Executive Officer and Executive Director of Persistent Systems, stated that the success of the offer confirms the strategic logic behind combining Persistent and Nagarro to build a global AI-led digital engineering leader.

Persistent Systems reported a 16.1% year-on-year increase in revenue to $452.4 million for the quarter ended June 30, 2026. The IT services firm also confirmed that the minimum acceptance threshold for its proposed acquisition of Nagarro SE has been satisfied.

The company interacted with institutional investors on September 21, 2026, reiterating details from its investor presentation filed on September 19, 2026. No unpublished price-sensitive information was disclosed during these sessions.

Financial Performance

Persistent Systems delivered consistent top-line growth, with trailing twelve months (TTM) revenue reaching $1,717.1 million, a 16.8% increase from the prior period. The firm maintained strong profitability metrics, recording an EBIT margin of 16.0% and a PAT margin of 11.2% for Q1FY27.

The company highlighted 25 sequential quarters of revenue growth since FY2021. In Q1FY27, Persistent’s quarterly revenue growth outperformed listed Indian IT peers by 3.24% on a quarterly basis and 12.63% on a yearly basis.

What the Numbers Show

While revenue expanded at a double-digit pace, the reported EBIT margin expansion of 32.7% significantly outstripped the 16.1% revenue growth. This divergence suggests operational leverage or favorable mix shifts drove profitability improvements more than volume alone during the quarter.

Nagarro Acquisition Update

Persistent Systems is acquiring 100% of Nagarro SE at an enterprise value of approximately EUR 1.27 billion, valuing the target at EUR 81 per share. This represents a premium of roughly 140% to Nagarro’s undisturbed closing price on June 25, 2026.

Key transaction developments include:

• The initial acceptance period ended on September 17, 2026, with the minimum threshold of 50% + 1 share met.
• An additional two-week acceptance period runs until October 6, 2026.
• Persistent has already secured a ~21% stake in Nagarro.
• Regulatory clearances have been obtained for merger control filings, with three out of five FDI jurisdictions approved.

The combined entity aims to leverage Nagarro’s EUR 999.3 million CY2025 revenue and its strong European footprint to diversify Persistent’s geographic exposure, which is currently 80.6% dependent on North America.

Strategic Outlook

The company emphasized its pivot toward an AI-led, platform-driven strategy under the '3C framework' (Core, Context, Coordination). Persistent plans to deepen alliances in Europe and pursue selective M&A to augment capabilities in AI, digital engineering, and product design.