Persistent-Nagarro deal an example of India’s outbound M&A trend: Barclays CEO

The acquisition of Germany-based technology company Nagarro by Persistent Systems is an example of how Indian companies are increasingly using outbound M&A to take capabilities developed in India to overseas markets, Barclays Group Chief Executive Officer C.S. Venkatakrishnan said.

Speaking to CNBC-TV18, Venkatakrishnan said Indian companies are using the capabilities they have gained by operating in the Indian market to acquire technology or capabilities overseas and operate them in a more efficient and scalable way.

Citing the Persistent-Nagarro transaction, he said Persistent Systems had acquired a capability in Europe and would bring the skills it has in India to build a greater operation in Europe and globally.

Venkatakrishnan said this trend could continue as long as outbound M&A is driven by capability and market access, adding that fluctuations in interest rates should not affect such transactions as much.

He expects this trend to be seen not just in technology but also in tech services, pharmaceuticals and heavy industries.

According to Venkatakrishnan, the growth of Indian companies is also driving greater ambition to expand both within India and overseas, with companies looking to take Indian capabilities and deploy them in foreign markets.

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