Tata Technologies to Acquire Germany’s ES-Tec Group in €75 Million Deal

16 Sep 2025 , 10:47 AM

Tata Technologies Pte. Limited, the Singapore subsidiary of Tata Technologies Ltd, has signed a definitive agreement to acquire German automotive engineering firm ES-Tec GmbH along with its subsidiaries.

The deal size is up to €75 million, entirely in cash, with an earn-out component payable over two years. The companies expect the transaction to close by the end of December 2025, once regulatory clearances are in place in Germany, Morocco, and other markets.

ES-Tec has built a reputation as a premium engineering services partner to automakers, with more than 300 specialists on its rolls. It is found in 2006 in Wolfsburg. The company has been steadily expanding, reporting €24.7 million in revenue in 2022, rising to €30.6 million in 2023 and €36.1 million in 2024.

ES-Tec brings deep expertise in advanced driver assistance systems, connected driving solutions, digital engineering, robotics, automation, and AI. Its nearshoring base in Morocco also gives clients dedicated access for testing and validation work.

For Tata Technologies, the buyout strengthens its engineering research and development practice, especially in embedded systems and systems engineering, while also giving it a larger presence in Germany, a key hub for automotive innovation.

The company has indicated that the transaction will be earnings-accretive from the first year of consolidation and will open the door to fresh cross-selling opportunities across global automotive clients.

Tata Technologies CEO Warren Harris called the acquisition a “strategic leap” that will allow the company to deliver full-scale product engineering solutions across the automotive chain and extend its global reach. The move is being seen as a key milestone for Tata Technologies as it looks to deepen its foothold in Europe and position itself as a comprehensive solutions provider for global OEMs.

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