Tata Technologies To Fully Acquire Es-Tec Group For Euro 75 Million
The consideration will be paid over the next two years and includes performance-based earn-outs.
Global product engineering and digital services firm Tata Technologies Ltd. on Saturday said it will acquire 100% stake in Germany-based ES-Tec Group and its subsidiaries for a total cash consideration of 75 million euros (over Rs 775 crore).
The company has entered into a definitive agreement to acquire 100% equity shares of ES-Tech GmbH and its subsidiaries (collectively, ES-Tec Group), Tata Technologies said in a statement.
The consideration will be paid over the next two years and includes performance-based earn-outs, it added.
"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," Tata Technologies MD & CEO Warren Harris said.
Founded in 2006 and headquartered in Wolfsburg, Germany, ES-Tec Group is a premium automotive engineering services provider with deep domain expertise in Driver Assistance Systems, Connected Driving, and Digital Engineering, the statement said.
It has a talent pool of over 300 skilled professionals, and has built a strong reputation for delivering complex systems engineering solutions to its customers, it added.
"ES-Tec's technical depth, customer centricity, and regional strength align perfectly with our strategic vision to be the first partner choice for global OEMs navigating the shift towards intelligent, connected, and sustainable mobility," Harris said.
Commenting on the development, ES-Tec MD & CEO Marc Wille said, "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."
The transaction is expected to be EPS accretive from the first full year of operation, the statement said.
