Mumbai: Tata Technologies Ltd., the recently listed engineering and R&D powerhouse of the Tata Group, has announced a strategic move set to reshape its global presence and technological capabilities. Over the weekend, the company declared the acquisition of ES-Tec Group, a Germany-based automotive engineering services firm, for a total cash consideration of €75 million, marking a decisive step in its expansion into next-generation mobility technologies.
The acquisition is expected to be EPS-accretive from the very first full year following completion, with the transaction anticipated to close by December 31, 2026. Tata Technologies will pay the consideration over the next two years, including performance-linked payouts, signaling a structured approach to integrating ES-Tec while aligning incentives with long-term growth. Analysts estimate that ES-Tec could contribute nearly 8% to Tata Technologies’ revenue, underlining the strategic importance of the deal.
According to the company, the acquisition significantly strengthens engineering, R&D, and ER&D capabilities, particularly in advanced automotive technologies such as ADAS, connected driving, and digital engineering solutions. Beyond technology, Tata Technologies gains a stronger foothold in Germany, leveraging highly skilled systems engineering talent and expanding its European footprint, a key hub for automotive innovation.
The transaction also opens avenues for cross-selling and synergies, allowing Tata Technologies to leverage ES-Tec’s established customer base and tap into OEM accounts across Europe. “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,” said Warren Harris, MD & CEO of Tata Technologies.
ES-Tec’s expertise in high-end automotive engineering complements Tata Technologies’ portfolio, particularly in next-generation mobility solutions, positioning the company to cater to evolving global automotive demands. Market watchers believe this move could accelerate Tata Technologies’ growth trajectory while consolidating its position in key international markets.
Shares of Tata Technologies ended last Friday at ₹702.85, showing little movement immediately after the announcement. The stock has faced pressure in 2025, down 21% so far, and is 50% below its all-time high of ₹1,400, yet remains comfortably above its IPO price of ₹500. Investors will be watching closely in the coming months to see how the acquisition translates into revenue growth, EPS accretion, and market confidence.