Tata Technologies to Acquire ES-Tec Group in €75 Million Full Buyout Deal

For a total cash consideration of 75 million euros (more than INR 775 crore), the multinational product engineering and digital services company Tata Technologies said on 13 September that it will purchase a 100% ownership in the Germany-based ES-Tec Group and its subsidiaries.

According to a statement from Tata Technologies, the business has finalised a deal to purchase all of the equity interests of ES-Tech GmbH and its subsidiaries (collectively, the ES-Tec Group). It further stated that performance-based earn-outs will be included in the consideration, which will be disbursed over the following two years.

The acquisition of ES-Tec Group, according to Warren Harris, MD & CEO of Tata Technologies, is a strategic move that strengthens Tata’s capacity to provide comprehensive product engineering solutions throughout the automotive value chain and demonstrates the company’s dedication to growing its global presence and gaining access to cutting-edge engineering capabilities.

Origin and Operations of ES-Tec Group

ES-Tec Group, a premium automotive engineering services provider with deep domain experience in Driver Assistance Systems (ADAS), Connected Driving, and Digital Engineering, was founded in 2006 and has its headquarters in Wolfsburg, Germany, according to the statement.

It said that it has a talent pool of more than 300 highly qualified individuals and has established a solid reputation for providing its clients with sophisticated systems engineering solutions. Tata’s strategic objective to be the first partner choice for global OEMs managing the change towards intelligent, connected, and sustainable mobility is ideally aligned with the technical depth, customer centricity, and regional strength of ES-Tec, according to Harris.

“Joining forces with Tata Technologies is a key step for the ES-Tec Group to extend the breadth and depth of capabilities and expand our international presence,” stated Marc Wille, MD and CEO of ES-Tec, in response to the developments. According to the announcement, the purchase is anticipated to be EPS profitable starting in the first full year of operation.

What This Means for Global OEMs

As it speeds up its growth in the European automotive engineering market, Tata Technologies’ acquisition of ES-Tec Group represents a turning point. With ES-Tec’s proficiency in digital engineering, linked technologies, and sophisticated driver assistance systems, Tata Technologies is better equipped to provide global OEMs with all-inclusive mobility solutions.