Tata Technologies Ltd has announced its strategic acquisition of German automotive engineering firm, ES-Tec Group, for EUR 75 million. The deal, which will be paid over two years and includes performance-based earn-outs, is set to significantly bolster Tata Technologies’ capabilities in next-generation mobility solutions and expand its European footprint.
The move is expected to accelerate the company’s engineering research and development (ER&D) growth, specifically in high-demand areas like Advanced Driver Assistance Systems (ADAS), Connected Driving and Digital Engineering. The acquisition also adds a substantial talent pool of over 300 skilled engineers with deep expertise in systems engineering.
The acquisition aligns with Tata Technologies’ global growth strategy, placing it in a stronger position within Germany, a key hub for automotive innovation. The company's management believes the deal will unlock significant commercial synergies, allowing for cross-selling opportunities and broader access to original equipment manufacturer (OEM) accounts. The transaction is projected to be EPS accretive from the first full year of operations. The automotive industry is in a state of flux, with European OEMs increasing investments in electrification and software-defined vehicle platforms. Tata Technologies is positioning itself to capitalise on this trend, with the market for Engineering Service Providers (ESPs) in Europe projected to grow from EUR 4.5 billion in 2020 to EUR 11.7 billion by 2030.
Warren Harris, MD & CEO, Tata Technologies, said, “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. Technical depth, customer centricity and regional strength align perfectly with our strategic vision to be the first partner choice for global OEMs navigating the shift towards intelligent, connected, and sustainable mobility.”
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. Together, we are ready to take on the future challenges of the automotive industry – delivering real value for our customers through competitive pricing, outstanding quality, and faster development cycles.”
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