New Delhi

Shares of Persistent Systems on Monday tumbled nearly 11 per cent after the firm said it will takeover German digital engineering company Nagarro, a move that will create a global AI-led digital engineering powerhouse with USD 2.9 billion in revenue run-rate.

The stock tanked 10.91 per cent to Rs 4,312.15 -- the 52-week low -- on the BSE.

At the NSE, shares of the firm dropped 10.93 per cent to hit a 52-week low of Rs 4,312.

Persistent and Nagarro are a "perfect strategic fit", combining Persistent's AI-led engineering leadership, North American scale and partnership depth with Nagarro's European business, complementary verticals, AI expertise, and ERP and CX (customer experience) delivery, according to a release on Saturday.

The combination would be a USD 2.9 billion AI-led engineering juggernaut with 46,000 plus employees in more than 40 countries, including about 37,000 in India, nearly 3,500 in North America, and around 3,000 in Europe, the release said.

Galaxy Germany Holding SE, a wholly-owned direct subsidiary of Persistent Systems Ltd, announced a voluntary public takeover offer for all outstanding shares in Nagarro SE at a cash consideration of EUR 81 per share, it said.

The offer follows the signing of a Business Combination Agreement, it said.

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Nagarro's management and supervisory board support the transaction and intend to recommend acceptance of the offer to their shareholders, subject to their review of the offer document.

Nagarro is a Munich-headquartered leader in digital engineering with about 18,500 employees across 40-plus countries, deep roots in industrial, consumer, TMT and BFSI verticals and a total revenue of EUR 1 billion (CY25).