MCF advised Tata Technologies on the acquisition of ES-Tec Group
Tata Technologies (BSE: 544028, NSE: TATATECH), a leading global product engineering and digital services company, today announced that it has entered into a definitive agreement to acquire 100% equity shares of ES-Tec GmbH and its subsidiaries (collectively, ES-Tec Group) for a total cash consideration of Euro 75 million. The consideration will be paid over the next two years and includes performance-based earn-outs linked to strategic milestones. The transaction is expected to be EPS accretive from the first full year of operations itself.
Founded in 2006 and headquartered in Wolfsburg, Germany, ES-Tec Group is a premium automotive engineering services provider with deep domain expertise in Driver Assistance Systems (ADAS), Comfort Electronics, and E-Mobility. With a talent pool of over 300 skilled professionals, ES-Tec has built a strong reputation for delivering complex systems engineering solutions to its customers.
This acquisition marks a significant step forward in TTL’s global growth strategy, reinforcing its commitment to delivering future-ready engineering solutions to the automotive industry. ES-Tec’s established presence in Germany—one of the world’s most advanced automotive innovation hubs—provides Tata Technologies with a strategic platform to scale its ER&D operations, access top-tier engineering talent, and deepen relationships with marquee OEMs.
The automotive industry is undergoing a profound transformation, with European OEMs accelerating R&D investments in ADAS/AD, electrification, and software-defined vehicle platforms. As a result, the market for Engineering Service Providers (ESPs) in Europe is projected to grow from Euro 4.5 billion in 2020 to Euro 11.7 billion by 2030. This trend presents significant opportunities for ES-Tec to expand its capabilities, strengthen its customer partnerships, and capture a larger share of high-value development programs.
The integration of ES-Tec Group will significantly enhance Tata Technologies’ ER&D capabilities, particularly in embedded systems, electronics, and systems engineering. With Complementary offerings and distinct customer bases, the combined entity is well-positioned to unlock cross-selling synergies, expand wallet share across existing accounts, and jointly pursue next-generation mobility programs.
The transaction is subject to customary closing conditions and regulatory approvals. Tata Technologies remains committed to investing in innovation, talent, and customer success as it continues to scale its global footprint and deliver differentiated value to its partners.
MCF Corporate Finance acted as financial buy-side advisor to Tata Technologies on this transaction.
