Tata Technology intends to purchase ES-Tec Group from Germany, aiming to intensify its automotive engineering efforts.
Tata Technologies Ltd, a leading provider of product engineering and digital services, has agreed to acquire ES-Tec GmbH and its subsidiaries for up to €75 million. This all-cash deal, routed through Tata Technologies' Singapore arm, is set to close by December 2026, subject to regulatory approvals.
The acquisition will significantly strengthen Tata Technologies' footprint in Germany, home to some of the world's largest automakers. ES-Tec Group, headquartered in Wolfsburg, posted revenues of €36 million in 2024 and employs over 300 people.
ES-Tec specializes in high-end automotive engineering services, with expertise in Advanced Driver-Assistance Systems (ADAS), connected driving, and digital engineering. The move is in response to European Original Equipment Manufacturers (OEMs) accelerating Research & Development (R&D) spending on ADAS, electrification, and software defined vehicles.
The deal consideration includes performance-linked earn-outs, and it is expected to be earnings-per-share accretive from the first full year of operations. The engineering services provider (ESP) market in Europe is projected to expand from €4.5 billion in 2020 to €11.7 billion by 2030, providing a promising growth outlook for the combined entity.
Tata Technologies offers product engineering and digital services to clients in the automotive, aerospace, and industrial heavy machinery sectors. The company had a successful listing on the Indian bourses in November 2023.
While TPG, a global alternative asset firm, has not been directly mentioned in this paragraph, it is relevant to note that they were previously involved in Tata Technologies. In 2026, Tata Technologies Ltd in Europe strengthened its automotive research and development capabilities through a cash transaction valued up to €75 million, involving a collaboration of investment groups, including Blackstone and GIC. This strategic acquisition is expected to position Tata Technologies as a key player in the European automotive engineering services market.
