Mumbai, June 29 -- The proposed acquisition is expected to significantly expand Persistent's global footprint and AI-led digital engineering capabilities. However, investors remained cautious over the execution of the large cross-border transaction.

Persistent has signed an agreement to combine with Munich-headquartered Nagarro and has acquired an approximately 21% stake in the company. It has also launched a voluntary public takeover offer for the remaining shares, subject to regulatory approvals and shareholder acceptance.

According to the investor FAQ released by the company, the combined entity would become the world's second-largest digital engineering company by revenue and India's seventh-largest technology services company, with...