Tata Technologies to Acquire ES-Tec Group for Up to €75 Million; Share Price Surges

Tata Technologies Pte. Limited, a Singapore-based subsidiary of Tata Technologies Ltd, has entered into an agreement to acquire 100% equity in ES-Tec GmbH and its subsidiaries (ES-Tec Group). 

The premium automotive engineering services company is headquartered in Wolfsburg, Germany, and was founded in 2006. The deal, valued at up to €75 million in cash, including earn-outs to be paid over 2 years, is expected to close by December 31, 2025.

Deal Details and Market Outlook 

Tata Technologies will acquire ES-Tec Group, a premium engineering services partner with over 300 professionals and revenues of €24.7 million in CY22, €30.6 million in CY23, and €36.1 million in CY24. 

ES-Tec specialises in ADAS, Connected Driving, Digital Engineering, automation, robotics, and AI, with operations in Germany and a nearshoring base in Morocco offering exclusive testing and validation access. The all-cash, non-related-party deal requires approvals from antitrust authorities in Germany, Morocco, and other jurisdictions, and is expected to be EPS accretive from the first full year. 

The European Engineering Services Provider (ESP) market is projected to grow from €4.5 billion in 2020 to €11.7 billion by 2030, driven by electrification, ADAS adoption, and software-defined vehicles.

Strategic Rationale and Official Statements

Through this acquisition, Tata Technologies aims to strengthen its ER&D capabilities, particularly in embedded systems and systems engineering, while enhancing its footprint in Germany, one of the world’s key automotive innovation hubs. It also adds a highly skilled talent pool and opens new cross-selling opportunities.

As per the exchange filing, Warren Harris, MD & CEO, Tata Technologies, said, “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.”

Read More: Tata Capital IPO: Tata Group Firm Targets $2 Billion Public Offer in October!

Tata Technologies Share Price Performance 

As of September 15, 2025, at 2:01 PM, Tata Technologies share price is trading at ₹708.50 per share, reflecting a surge of 0.91% from the previous closing price.

Conclusion

The acquisition of ES-Tec Group marks a pivotal moment for Tata Technologies as it accelerates its expansion in Europe’s automotive engineering space. With ES-Tec’s expertise in advanced driver assistance systems, connected technologies, and digital engineering, Tata Technologies gains a strong platform to deliver comprehensive mobility solutions for global OEMs. 

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