Persistent Systems secures $1.5B as Indian IT firms borrow
Indian IT companies are shaking things up by borrowing money for major takeovers instead of sticking to their usual debt-free style.
Persistent Systems is pursuing the proposed acquisition of German tech firm Nagarro using $1.5 billion in bridge financing from Barclays, a move that is becoming common, with companies like Coforge and Cognizant also choosing debt to snag new assets.
Debt enables AI acquisitions, analysts warn
Going into debt helps these firms grab specialized tech, especially AI, without diluting shareholder value or waiting for slow investments.
But it is not all smooth sailing, analysts warn that if growth does not keep up, these debts could become a burden and make integration tricky.
Still, the shift shows how much the industry is changing as everyone races to stay ahead in tech.