Tata Technologies (TTL) has agreed to acquire ES-Tec Group, a German automotive engineering services provider, for €75m in cash. The deal includes performance-based earn-outs and is expected to be accretive to TTL’s earnings per share. The acquisition aims to expand TTL’s talent pool and offer commercial synergies with complementary offerings.

ES-Tec Group, established in 2006, specializes in connected driving, advanced driver assistance systems, and digital engineering. The acquisition will enhance TTL’s global growth and provide access to ES-Tec’s automotive innovation hubs. MCF Corporate Finance advised TTL on the transaction, which CEO Warren Harris believes will strengthen TTL’s position as a top partner for global OEMs.

The automotive sector in Europe is undergoing a transformation, with manufacturers focusing on ADAS/AD, vehicle electrification, and software-centric architectures. TTL anticipates significant growth in the European engineering service provider market, from €4.5bn in 2020 to €11.7bn by 2030. The acquisition of ES-Tec Group aligns with TTL’s strategic vision for the future of intelligent, connected, and sustainable mobility.

Read more at Yahoo Finance: Tata Technologies seals deal to buy out Germany’s ES-Tec Group