Tata Technologies (BSE: 544028, NSE: TATATECH), a global leader in product engineering and digital services, has signed a definitive agreement to acquire ES-Tech GmbH and its subsidiaries, together known as the ES-Tec Group, for a total cash consideration of €75 million. The amount will be paid over the next two years and includes performance-linked earn-outs. The company expects the deal to be earnings per share accretive from the first full year of operations.
Established in 2006 and headquartered in Wolfsburg, Germany, ES-Tec Group is a highly regarded automotive engineering services provider with expertise in Driver Assistance Systems (ADAS), Connected Driving, and Digital Engineering. With a team of more than 300 professionals, the company has earned a strong reputation for delivering advanced systems engineering solutions to leading global automakers.
For Tata Technologies, this acquisition represents a significant milestone in its global growth strategy. By integrating ES-Tec’s operations, the company will gain a stronger foothold in Germany, which is recognized as one of the world’s most advanced automotive innovation hubs. The move is expected to enhance Tata Technologies’ ability to scale its engineering and R&D operations, tap into Europe’s top engineering talent, and build deeper partnerships with marquee automotive OEMs.
The automotive industry in Europe is currently undergoing a major transformation, driven by the rapid development of ADAS and autonomous driving technologies, vehicle electrification, and the rise of software-defined vehicles. Market projections suggest that the European Engineering Service Providers market will expand from €4.5 billion in 2020 to €11.7 billion by 2030. Against this backdrop, the acquisition of ES-Tec positions Tata Technologies to capture a larger share of high-value development programs, expand its capabilities, and strengthen its role as a partner of choice for next-generation automotive engineering solutions.
