Persistent Systems shares tank 11% after €1.27 bn all-cash Nagarro acquisition deal
The Persistent Systems shares crashed, dropping 11.22% to Rs 4,285 on the BSE on Monday. This followed the company’s announcement of plans to acquire 100% of Munich-based Nagarro in an all-cash deal at €81 per share, at a 140% premium to Nagarro’s share price, valuing the company at €1.27 billion.
Brokerages have expressed concerns about Nagarro’s slower revenue growth and lower margins, potential integration challenges, and the high valuation of the deal.
