New Delhi, Oct. 10 -- Persistent Systems is on track to become the seventh-largest tech services firm in the country after lifting its stake in the German software engineering firm to 94%, a level that can enable a buyout of existing Nagarro shareholders into a merged entity, under German regulations.

The move effectively removes the biggest uncertainty around Persistent's $1.3 billion acquisition, announced in June, and sets the stage for integrating Nagarro into its operations.

Beyond adding nearly $1 billion in annual revenue, the deal significantly expands Persistent's presence in Europe, a market that will account for a much larger share of the combined company's business.

For Persistent, the acquisition is about more than scale; ...