Study how Atos died after it's Syntel acquisition by paying top dollar.

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Some naive nagarro employees are considering it as a positive for some reason

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This acquisition is likely to be a major distraction for Nagarro employees. In most mergers, salary hikes, promotions, and role upgrades tend to slow down or get deferred for 12–24 months while the two organizations work through integration and align their structures, processes, and culture.

The acquiring company naturally has the upper hand. It is unlikely that Persistent has set aside a separate budget specifically for generous salary increases for Nagarro employees. A significant portion of the available capital has already been used to pay a substantial premium to Nagarro's owners and shareholders. In that sense, much of the "extra money" has already left the table.

During the integration period, employees can expect plenty of reassuring communication about synergies, growth opportunities, and the exciting future of the combined company. While some of that may well prove true, compensation-related decisions often take a back seat until the integration stabilizes.

It's also common for companies being acquired to optimize their balance sheets before the transaction closes, distributing excess cash or otherwise cleaning up the books rather than leaving surplus cash for the acquiring company.

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They want our clients, not employees. Get ready for stepfather treatment.

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You can also study lti and mindtree merger

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The counterargument is only partly correct.
Originally, Larsen & Toubro Infotech and Mindtree were completely independent companies.
In 2019, Larsen & Toubro acquired a controlling stake in Mindtree through a hostile takeover.
From 2019 until the merger in 2022, both LTI and Mindtree were sister companies under the L&T Group.
The merger itself was therefore an intra-group consolidation, not an acquisition of an unrelated company.
That's an important distinction because L&T already controlled both boards and both management teams before the merger. There was no bidding war, no need to negotiate a takeover premium with an independent owner, and shareholder alignment was much simpler.

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Hi Fishes,
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