Pune: Tata Technologies Ltd. (BSE: 544028, NSE: TATATECH) announced a definitive agreement to acquire ES-Tec Group, Germany, for a total cash consideration of €75 million.
The acquisition underscores Tata Technologies’ commitment to advancing its global Engineering Research and Development (ER&D) footprint and next-generation mobility solutions.
ES-Tec Group Brings Strong Expertise in ADAS and Connected Driving
Founded in 2006 and headquartered in Wolfsburg, ES-Tec Group is a premium automotive engineering services provider with deep expertise in Driver Assistance Systems (ADAS), Connected Driving, and Digital Engineering.
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With a workforce of over 300 professionals, the company has established itself as a trusted partner for complex systems engineering projects.
This acquisition significantly enhances Tata Technologies’ capabilities in high-growth ER&D domains aligned with global OEM priorities, including ADAS, Connected Driving, and Digital Engineering. It also strengthens the company’s presence in Germany—one of the world’s most advanced automotive innovation hubs.
Strategic Benefits of ES-Tec Group Acquisition
- Accelerated ER&D Growth: Expands Tata Technologies’ offerings in high-value automotive engineering programs.
- Enhanced European Presence: Establishes a stronger foothold in Germany, a critical automotive market.
- Expanded Talent Base: Integrates a pool of 300+ skilled engineers with systems engineering expertise.
- Commercial Synergies: Unlocks cross-selling opportunities and access to new OEM accounts.
- EPS Accretive: Expected to be accretive from the first full year of operations.
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Warren Harris, MD & CEO of Tata Technologies, said: “The acquisition of ES-Tec Group enhances our ability to deliver end-to-end engineering solutions across the automotive value chain. ES-Tec’s technical expertise and customer-centric approach align with our vision to be the preferred partner for global OEMs driving intelligent, connected, and sustainable mobility.”
Marc Wille, MD & CEO of ES-Tec Group, added: “Partnering with Tata Technologies enables us to extend our capabilities and expand internationally. Together, we aim to deliver greater value for customers through quality, competitive pricing, and faster development cycles.”
The European automotive industry is undergoing rapid transformation, with OEMs increasing R&D investments in ADAS, electrification, and software-defined vehicles. The market for Engineering Service Providers (ESPs) in Europe is expected to grow from €4.5 billion in 2020 to €11.7 billion by 2030, presenting significant growth opportunities for Tata Technologies and ES-Tec Group.
The acquisition is subject to customary closing conditions and regulatory approvals. MCF Corporate Finance served as the advisor to Tata Technologies on the transaction.
