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Informist, Saturday, Jun. 27, 2026

--Persistent Systems wins over $650-mln total contract value order from US co 

--Persistent Systems wins order from US co for enterprise software,cloud svcs 

MUMBAI – Persistent Systems Ltd. Saturday said it has incorporated a wholly-owned subsidiary, Galaxy Germany Holding SE, by acquiring full stake through the local consultant in Germany for 135,000 euros, or around INR 14.5 million. The subsidiary has been incorporated to expand the footprint of Persistent Systems in Europe by way of potential merger and acquisition opportunities in the region, it said in an exchange filing.

Subsequently, Persistent Systems has entered into a share purchase agreement with Lantano Beteiligungen GmbH through Galaxy Germany Holding to acquire 21% stake in Nagarro SE, a company listed in Germany, at an offer price of $81 euro per share. Further, Galaxy Germany Holding has entered into an agreement to acquire all outstanding shares in Nagarro through a public offer to the latter's shareholders.

The offer price represents a premium of around 140% to Nagarro's closing price Thursday, and around 94% to the three-month volume-weighted average price, Persistent Systems said. It believes this represents full and fair value for Nagarro's shareholders. At the same time, the transaction is expected to be cash earnings-per-share accretive for the shareholders of Persistent Systems in the first year of the transaction, it said.

Persistent Systems will fund the transaction with committed financing from Barclays. The company's board has approved Galaxy Germany Holding to secure a committed bridge financing facility with a nominal amount of 1.40 billion euros and associated claims and interest from Barclays Bank PLC through consortium. As part of this, Persistent Systems will provide a corporate guarantee of up to 1.54 billion euros to Barclays in favour of Galaxy Germany Holding and create a pledge on the shares and receivables of Galaxy Germany Holding to secure the bridge financing.

"The proposed combination is designed to create a scaled, globally diversified AI-led (artificial intelligence-led) digital engineering and enterprise modernisation powerhouse with at-scale presence in North America and Europe and meaningful Rest of the World exposure," Persistent Systems said. "The combined Persistent–Nagarro group would be better positioned to support multi-region enterprise clients requiring integrated AI, engineering, ERP/CX (Enterprise Resource Planning and Customer Experience), data and cloud capabilities across local and global delivery models." 

In a separate filing, Persistent Systems said it has entered into a long-term strategic services agreement with a US-based technology company to expand its presence across North America, Europe, and the Asia-Pacific region. The six-and-a-half-year strategic services agreement is focused on product development, product support, and cloud services operations and support and has a total contract value of over $650 million and an annual contract value of over $125 million. Under this contract, Persistent Systems will leverage its domain expertise along with its advanced AI-driven platforms to deliver innovative, customised solutions for enterprise software and cloud services.

For the March quarter, the company had reported a consolidated net profit of INR 5.29 billion on revenues of INR 40.56 billion. Thursday, its shares closed at INR 4,841.50 on the National Stock Exchange, down nearly 2% from Wednesday. The domestic equity market was closed Friday for Muharram.  End

US$1 = INR 94.39

Reported by Arya S. Biju

Edited by Rajeev Pai

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