• Nagarro acquisition terms: Persistent Systems is acquiring Germany-based Nagarro for approximately $1.45 billion (€81 per share in cash, representing a 140% premium) at an enterprise valuation of roughly 9 times CY2025 EBITDA. The transaction is financed through debt without equity dilution and is expected to be EPS accretive from year one.
• Geographic and client expansion: The transaction expands Persistent into a $2.9 billion entity, increasing European revenue to about $600 million, adding a footprint across the Middle East, Turkey, and Japan, and increasing European headcount from 300 to 3,000 employees. Customer overlap is minimal, with only 10 shared accounts among the top 200 clients.
• Growth and margin roadmap: Persistent plans to accelerate Nagarro's 5% to 6% constant-currency growth, aspiring to bring combined company growth to mid-teens or higher within 6 to 8 quarters. Margin expansion is expected to follow through revenue acceleration, operational synergies, and duplicate facility rationalization.
• Capital allocation strategy: Management will halt any other major M&A activity over the next two to three years to focus on regulatory approvals, integration, and execution, with no planned changes to existing dividend policies.