Tata Technologies (TTL) has agreed to acquire a 100% participation in the German automotive engineering service provider ES-TEC GmbH and its subsidiaries (collectively the ES-TEC group) for 75 million euros (87.9 million dollars) in cash.
Depending on the agreed conditions, TTL, an engineering and digital product services company, will plan for the next two years.
This includes performance -based results.
TTL expects the transaction to be accredited to its profit by action of the first full year after the acquisition.
It also provides that the acquisition will offer “commercial synergies” with “complementary” offers.
Thanks to the acquisition, he seeks to extend his talent basin with the addition of more than 300 professionals with expertise in systems engineering.
The completion of the transaction depends on the satisfaction of standard closing conditions, including regulatory approvals.
ES-TEC Group, created in 2006, offers services in connected driving, advanced driver systems (ADAS) and digital engineering.
According to a TTL declaration, the last acquisition will strengthen its growth worldwide and improve its ability to provide engineering solutions “ready for future”.
The agreement also offers TTL access to Hubs of ES-TEC automotive innovation, which should serve as a pivot platform for the company to widen its research and engineering development capacities.
In addition, it will allow TTL to strengthen its links with the manufacturers of original equipment (OEM).
MCF Corporate Finance was TTL’s advisor for this transaction.
The CEO of Tata Technologies and MD Warren Harris said: “The acquisition of the ES-TEC group is a strategic jump that improves our ability to provide end-to-end products engineering solutions through the automotive value chain and represents our commitment to extend our global footprint in access to innovative engineering capacities.
“The technical depth of the ES-TEC, the centricity of customers and the regional force are perfectly aligned with our strategic vision to be the first choice of partner for global OEMs which sail towards intelligent, connected and sustainable mobility.”
TTL has noted that the automotive sector is currently experiencing a significant change, European manufacturers increasing their research and development efforts in areas such as ADAS / AD, vehicle electrification and software -oriented vehicle architectures.
The European market for engineering service providers should drop from 4.5 billion euros in 2020 to 11.7 billion euros by 2030, the company said.
“Tata Technologies Seals Deals to buy the ES-TEC group of Germany” was created and published by Just Auto, a brand belonging to Globaldata.
