Tata Technologies Buys ES-Tec Group

Tata Technologies, a global product engineering and digital services company, has entered into an agreement to buy 100% equity shares of ES-Tech GmbH and its subsidiaries (collectively, ES-Tec Group) for total cash consideration of €75 million. The consideration will be paid over two years and includes performance-based earn-outs. The transaction is expected to be EPS accretive from the first entire year of operations.

Based in Wolfsburg, Germany, ES-Tec Group is an automotive engineering services provider with domain expertise in Driver Assistance Systems (ADAS), connected driving, and digital engineering. With over 300 skilled professionals, ES-Tec has been delivering complex systems engineering solutions to its customers.
 
This acquisition will enhance TTL’s global growth strategy. With ES-Tec’s established presence in Germany, it provides Tata Technologies with a strategic platform to scale its ER&D operations, access engineering talent, and deepen relationships with OEMs.

“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 and represents our commitment to expand our global footprint in accessing innovative engineering capabilities,” says Warren Harris, MD & CEO of Tata Technologies.
 
He continues, "We are delighted to welcome the Es-Tec team to the TTL family. The integration of ES-Tec Group will significantly enhance Tata Technologies’ ER&D capabilities, particularly in embedded systems, electronics, and systems engineering."   

Sources: Press materials received from the company and additional information gleaned from the company’s website.