The transcript of investor/analyst call held on Sunday June 28, 2026, is as enclosed.
PERSISTENT · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Persistent Systems announced a definitive agreement to acquire 100% of German-listed Nagarro at an enterprise value of €1.27 billion (€81 per share in cash), representing a 140% premium to the undisturbed share price. The combined entity will form a $2.9 billion+ AI-led digital engineering powerhouse with 46,000+ employees across 40+ countries, positioning it as the 2nd largest digital engineering player globally. Persistent separately announced a strategic $650 million+ long-term deal with an existing US tech client, contributing roughly $125 million+ annually over 6.5 years. The Nagarro acquisition is being funded entirely through a €1.4 billion committed bridge facility from Barclays at Euribor plus 175-250 bps, with initial leverage of 1.9-2.5x expected to drop to 1x by FY2030. Management expects the deal to be Cash EPS and Reported EPS accretive from Year 1 (excluding one-time transaction costs), with closing anticipated in Q4 CY2026 or early Q1 CY2027.
This is a transformative acquisition that nearly doubles Persistent's revenue base and significantly expands its European footprint from ~8% to ~22% of combined revenues. Short-term, shareholders should expect debt-funded balance sheet expansion, but management has outlined a clear deleveraging path and is guiding to Year-1 EPS accretion, supporting a constructive long-term view on the stock.