New Delhi, June 28 -- Persistent Systems Ltd is looking to anchor its long-standing European ambitions and hit a $5 billion revenue target by March 2031 through its largest-ever acquisition, German digital engineering firm Nagarro. The deal is expected to propel the company up two spots to become India's seventh-largest IT services firm, boasting a combined revenue of about $2.9 billion.

During an analyst call on Sunday, the company's management outlined the strategic rationale behind the mega-deal and addressed analysts' queries regarding debt repayment.

"They (Nagarro) are a key implementation partner for SAP, whereas our ERP (enterprise resource planning) progress is not necessarily at scale, so these kinds of additions are fairly im...