Quick Summary: Tata Technologies has signed a definitive agreement to acquire Germany-based ES-Tec Group for up to €75 million in cash. The acquisition, expected to close by December 2025, will strengthen Tata Technologies’ ER&D capabilities in ADAS, Connected Driving, and Digital Engineering. With over 300 engineers, ES-Tec adds strong technical expertise and deepens the company’s presence in Europe.
Full Article: Tata Technologies Limited, a global product engineering and digital services company, has entered into a definitive agreement to acquire 100% equity in ES-Tec GmbH and its subsidiaries (collectively, ES-Tec Group). The transaction, valued at up to €75 million in cash including performance-based earn-outs, is expected to be completed by December 31, 2025, subject to regulatory approvals in Germany, Morocco, and other jurisdictions.
Founded in 2006 and headquartered in Wolfsburg, Germany, ES-Tec Group specializes in high-end automotive engineering services, with expertise in Advanced Driver Assistance Systems (ADAS), Connected Driving, and Digital Engineering. The company employs over 300 professionals and reported revenues of €36.1 million in 2024.
Tata Technologies stated that the acquisition will strengthen its Engineering, Research & Development (ER&D) capabilities and broaden its value proposition for global automotive customers. ES-Tec’s presence in Germany—considered one of the world’s leading automotive innovation hubs—will provide the company with access to local talent and expand its customer base. The deal is also expected to be earnings per share (EPS) accretive from the first full year of operations.
Warren Harris, Managing Director and CEO of Tata Technologies, described the acquisition as a “strategic leap” that will enhance the company’s ability to deliver end-to-end product engineering solutions across the automotive value chain. Marc Wille, CEO of ES-Tec, said the partnership would enable ES-Tec to expand internationally and meet the future challenges of the automotive industry.
The acquisition comes at a time when the European automotive market is investing heavily in ADAS, electrification, and software-defined vehicles, creating growing opportunities for engineering service providers.