ICRA places Persistent Systems on negative watch over Nagarro acquisition
PERSISTENT · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
ICRA has placed Persistent Systems' AA+ issuer rating on Watch with Negative Implications, citing the proposed debt-funded acquisition of Germany's Nagarro SE valued at around EUR 1.27 billion. The deal will be financed through a EUR 1.4 billion bridge facility, pushing consolidated leverage to 2.0-4.5 times. Debt to operating profit may stay above the 1.3 times negative trigger till FY2029. The combined entity could generate around USD 2.9 billion in annual revenue across over 40 countries.
Negative watch signals possible downgrade risk; stock may see pressure from higher leverage, though acquisition could strengthen business profile over time.