TATATECH

Acquires ES-Tec Group to Enhance Automotive Engineering Capabilities

, has entered into a definitive agreement to acquire the German-based ES-Tec Group for a total cash consideration of €75 million. The acquisition is a strategic move to bolster Tata Technologies' global presence and expertise in next-generation mobility solutions. → Acquisition Details: Tata Technologies, through its Singapore-based subsidiary Tata Technologies Pte. Limited, will acquire 100% of the equity shares of ES-Tec GmbH and its subsidiaries. The purchase price is €75 million and includes performance-based earn-outs, payable over the next two years. The transaction is expected to enhance Tata Technologies' capabilities in high-growth areas of Engineering Research and Development (ER&D). The acquisition is projected to be accretive to Earnings Per Share (EPS) starting from the first full year of operations. → About the Acquired Company: Founded in 2006, the ES-Tec Group is a premium automotive engineering service provider headquartered in Wolfsburg, Germany. The company has a strong focus and deep knowledge in Advanced Driver Assistance Systems (ADAS), Connected Driving, and Digital Engineering. It has a workforce of over 300 skilled professionals. ES-Tec's revenues for the last three completed years were €24.7 million in 2022, €30.6 million in 2023, and €36.1 million in 2024. → Strategic Rationale: The acquisition will significantly enhance Tata Technologies' ER&D capabilities and broaden its end-to-end value proposition for global automotive clients. ES-Tec's presence in Germany will strengthen Tata Technologies' growing footprint in Europe, providing access to a strong local talent pool. According to Warren Harris, MD & CEO of Tata Technologies, the acquisition is a "strategic leap" that aligns with the company's vision to be a top partner for global OEMs transitioning towards intelligent, connected, and sustainable mobility.