Tata Technologies has announced the acquisition of ES-Tec Group, a German automotive engineering services provider, for €75 million in cash. The deal marks the Indian company’s latest expansion into European markets as it seeks to capitalize on growing demand for advanced automotive technologies.
The transaction involves the purchase of 100% equity shares in ES-Tech GmbH and its subsidiaries. Payment will be structured over two years and includes performance-based earn-outs. Tata Technologies expects the acquisition to be earnings per share accretive from the first full year of operations.
Founded in 2006 and based in Wolfsburg, ES-Tec Group employs over 300 engineers specializing in Advanced Driver Assistance Systems (ADAS), connected driving solutions, and digital engineering services. The company has established itself as a provider of complex systems engineering solutions to automotive manufacturers.
The acquisition positions Tata Technologies to expand its engineering research and development capabilities in high-growth automotive segments. Germany’s status as a leading automotive innovation center provides strategic access to original equipment manufacturers and top-tier engineering talent.
Industry data indicates the European market for engineering service providers is projected to grow from €4.5 billion in 2020 to €11.7 billion by 2030, driven by increased investment in autonomous driving, electrification, and software-defined vehicle platforms.
“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,” said Warren Harris, Managing Director and CEO of Tata Technologies.
Marc Wille, Managing Director and CEO of ES-Tec, stated that joining Tata Technologies would enable the German firm to “extend the breadth and depth of capabilities and expand our international presence.”
The deal is subject to customary closing conditions and regulatory approvals. MCF Corporate Finance served as advisor to Tata Technologies on the transaction.
Tata Technologies trades on the BSE under symbol 544028 and on the NSE as TATATECH. The company provides product engineering and digital services to global automotive and other industrial clients.