Tata Technologies buys Germany’s ES-Tec Group to boost global automotive ER&D

  • Industry News
  • Sep 17,25
Tata Technologies’ acquisition of ES-Tec Group for €75 mn will strengthen its engineering research & development (ER&D) in ADAS, connected driving and digital engineering while deepening ties with European automotive OEMs.
Tata Technologies buys Germany’s ES-Tec Group to boost global automotive ER&D

Pune

Tata Technologies, a global product engineering and digital services company, has signed a definitive agreement to acquire 100 per cent equity shares of ES-Tech GmbH and its subsidiaries (collectively, ES-Tec Group) for a total cash consideration of €75 million. The payment will be completed over two years and includes performance-linked earn-outs. The transaction is expected to be EPS accretive from the first full year of operations.

Established in 2006 and headquartered in Wolfsburg, Germany, ES-Tec Group is a premium automotive engineering services provider with expertise in Driver Assistance Systems (ADAS), Connected Driving, and Digital Engineering. Backed by a workforce of more than 300 engineers, ES-Tec has developed a strong reputation for delivering advanced systems engineering solutions to global clients.

The acquisition is a major step in Tata Technologies’ global growth strategy, reinforcing its mission to deliver future-ready engineering solutions to the automotive industry. ES-Tec’s established presence in Germany, one of the world’s most advanced automotive hubs, will provide Tata Technologies with a stronger platform to expand ER&D operations, tap into leading engineering talent, and forge deeper relationships with leading OEMs.

The automotive industry is witnessing a transformation, with European OEMs accelerating R&D in ADAS, electrification, and software-defined vehicle platforms. The European ESP market is projected to grow from €4.5 billion in 2020 to €11.7 billion by 2030, creating significant opportunities for ES-Tec to expand capabilities and win high-value programmes.

Warren Harris, MD & CEO of Tata Technologies, said, “This acquisition is a strategic leap that strengthens our ability to deliver end-to-end engineering solutions across the automotive value chain and reinforces our commitment to scaling global innovation. ES-Tec’s strengths in systems engineering and customer-focused delivery align with our vision to be the preferred partner for global OEMs navigating the transition to intelligent, connected, and sustainable mobility.”

The integration of ES-Tec Group will boost Tata Technologies’ ER&D capabilities in embedded systems, electronics, and digital platforms, enabling synergies and cross-selling opportunities.

Marc Wille, MD & CEO of ES-Tec, said, “Joining Tata Technologies marks a key step in broadening our capabilities and expanding globally. Together, we will deliver greater value for customers with faster cycles, competitive solutions, and a sharper focus on innovation. This partnership positions us strongly to address the challenges of next-generation mobility.”

The acquisition is subject to closing conditions and regulatory approvals. MCF Corporate Finance, Europe, acted as advisor to Tata Technologies for this transaction.

Tata Technologies is a global leader in product engineering and digital services, supporting mobility, aerospace, industrial machinery, and heavy equipment sectors. ES-Tec contributes deep automotive domain knowledge, a strong nearshoring base in Morocco for validation and testing, and a proven track record in ADAS and digital engineering, strengthening the combined capability to shape tomorrow’s mobility.

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