• Strategic deal rationale: The $1.4 billion acquisition of German firm Nagarro is designed for strategic geographic expansion rather than merely consolidating revenues or scaling operations.
• Geographic market expansion: The acquisition gives Persistent an entry into Japan and establishes scale across European and MENA markets, including Germany, Switzerland, France, Italy, and Turkey.
• Earnings accretion: Management expects the Nagarro transaction to be EPS accretive from its very first year of completion.
• Combined entity growth: Persistent is confident in extending its company-level growth rates to the combined entity over the next one to two years, subject to regulatory clearances and execution.