Tata Technologies has announced the acquisition of Germany-based ES-Tec Group for EUR 75 million in an all-cash transaction. The company said the deal will expand its engineering capabilities in Europe, with completion subject to regulatory approvals in Germany, Morocco and other jurisdictions. The acquisition is expected to close by December 2025.
Tata Technologies will acquire 100 percent of ES-Tec Group and its subsidiaries. The payment will be made over two years, with part of the consideration linked to performance-based earn-outs. The acquisition is projected to be earnings-accretive from the first full year after closing.
Founded in 2006 and headquartered in Wolfsburg, Germany, ES-Tec Group provides automotive engineering services with expertise in advanced driver assistance systems, connected driving and digital engineering. The company employs more than 300 professionals and reported EUR 36 million in revenue in 2024.
According to Tata Technologies, the transaction will strengthen its engineering research and development presence in Germany, providing direct access to original equipment manufacturer accounts and specialised engineering talent. The company expects the move to enhance its work in embedded systems, electronics and systems engineering for next-generation mobility solutions.
Commenting on the acquisition, Warren Harris, MD & CEO of Tata Technologies, said the transaction is a “strategic leap” to deliver end-to-end product engineering solutions and underlines the company’s commitment to expanding global capabilities. Marc Wille, MD & CEO of ES-Tec Group, said joining Tata Technologies provides ES-Tec with new growth opportunities and an expanded global reach.
The European engineering services market is projected to grow from EUR 4.5 billion in 2020 to EUR 11.7 billion by 2030, driven by investments in advanced driver assistance systems, electrification and software-defined vehicles. Tata Technologies said it intends to use ES-Tec’s technical expertise and customer base to access wider opportunities in this market.
Tata Technologies, part of the Tata Group, is a product engineering and digital services company headquartered in Pune, India. It works with automotive, aerospace and industrial machinery manufacturers, providing engineering research and development services, product lifecycle management and digital solutions.
