A 3% rise in Tata’s shares after the $81.7 million acquisition of German based automotive group gives technology access to Tata Technology.
Tata Technologies, signs an agreement to acquire 100% equity shares of Germany-based ES-Tec Group for a total cash consideration of $81.7 million. The consideration will be paid over the next two years and includes performance-based earn-outs. The acquisition is subject to regulatory approvals and customary closing conditions.
This acquisition enables Tata Technologies’ enables engineering research and development (ER&D) capabilities in high-demand areas such as driver assistance systems, connected driving and digital engineering. These domains have become a priority for global automotive manufacturers, who are accelerating research in advanced driver assistance, electrification and software-defined vehicles.
ES-Tec Group, founded in 2006 and headquartered in Wolfsburg, Germany, employs more than 300 engineers specialising in systems engineering. Its expertise in embedded systems and electronics. Marc Wille, MD & CEO of ES-Tec said – “Joining forces with Tata Technologies is a key step for the ES-Tec Group to extend the breadth and depth of capabilities and expand our international presence.
The automotive industry is undergoing a profound transformation, with European OEMs accelerating R&D investments in ADAS/AD, electrification, and software-defined vehicle platforms. As a result, the market for Engineering Service Providers (ESPs) in Europe is projected to grow from $4.8 billion in 2020 to $12.5 billion by 2030. This trend presents significant opportunities for ES-Tec to expand its capabilities, strengthen its customer partnerships, and capture a larger share of high-value development programs.
“The acquisition of ES-Tec Group is a strategic leap that enhances our ability to deliver end-to-end product engineering solutions across the automotive value chain and represents our commitment to expand our global footprint in accessing innovative engineering capabilities,” said Warren Harris, MD & CEO of Tata Technologies.
