Photo Credit: Tata Technologies Ltd
Tata Technologies Ltd, a global engineering and product development services firm, announced on Saturday that it has signed a definitive agreement to acquire 100% equity in Germany-based ES-Tec GmbH and its subsidiaries for €75 million (approximately ₹750 crore). The move underscores Tata Tech’s ambition to strengthen its presence in Europe’s automotive hub and sharpen its expertise in advanced driver assistance systems (ADAS) and software-defined vehicles.
Deal Structure and Financial Impact
The consideration, valued at ₹777 crore, will be paid over the next two years and includes performance-based earn-outs, Tata Technologies said in a regulatory filing. The transaction is subject to customary closing conditions and regulatory approvals. According to the company, the acquisition will be earnings per share (EPS) accretive from the first full year of operations.
About ES-Tec Group
Founded in 2006 and headquartered in Wolfsburg, Germany, ES-Tec Group is a specialized automotive engineering services provider. With a team of around 300 professionals, the company has developed a strong portfolio in ADAS, connected driving, and digital engineering. ES-Tec is known for delivering complex systems engineering solutions to European original equipment manufacturers (OEMs).
Strategic Rationale
Warren Harris, Managing Director and CEO of Tata Technologies, described the deal as a “strategic leap” that will enhance the firm’s end-to-end product engineering solutions across the automotive value chain. He added that ES-Tec’s technical expertise, customer focus, and regional strength align with Tata Tech’s vision to become the preferred global partner for OEMs shifting toward intelligent, connected, and sustainable mobility.
Harris also pointed out that the acquisition will significantly bolster Tata Tech’s engineering research and development (ER&D) capabilities, particularly in embedded systems and electronics. “The integration with ES-Tec allows us to unlock cross-selling synergies and jointly pursue next-generation mobility programs,” he said.
Global Market Context
According to Tata executives, the global automobile industry, which had slowed product launches and investments amid trade uncertainties and tariffs in recent years, is regaining confidence. “Over the past few months, we’re seeing decisions begin to flow again as the market adapts to new realities,” Harris told The Economic Times in an interview.
ES-Tec’s Response
Marc Wille, Managing Director and CEO of ES-Tec, called the partnership with Tata Technologies a “pivotal step” in broadening capabilities and expanding its international footprint. “Together we are ready to take on the future challenges of the automotive sector—offering competitive pricing, high-quality solutions, and faster development cycles,” Wille said.
He added that the joint effort aims to position the combined entity as a partner of choice for the mobility industry.
Outlook
The acquisition marks a major milestone in Tata Technologies’ global expansion strategy. With the ES-Tec deal, the company is not only strengthening its foothold in Europe but also positioning itself to play a more decisive role in the fast-evolving landscape of software-defined and connected vehicles.
Reports from The Economic Times, CNBC-TV18, and Business Standard confirm that the transaction underscores Tata Tech’s long-term commitment to scaling innovation, investing in talent, and delivering differentiated value to global automotive partners.
