Tata Technologies Gains on Strategic German Acquisition

By siliconindia | Monday, 15 September 2025, 09:12 Hrs

Tata Technologies will acquire German automotive engineering firm ES-Tec GmbH for €75 million (Rs 777 crore).
The acquisition strengthens Tata Tech’s global footprint in advanced automotive tech like ADAS and digital engineering.
Tata Tech shares rose nearly 3% following the announcement, reflecting investor optimism.

Tata Technologies shares gained nearly 3% after the company announced a major acquisition to strengthen its global automotive engineering capabilities. The Tata Group firm has signed a deal to acquire 100% equity in German based ES-Tec GmbH and its subsidiaries for a total consideration of €75 million (Rs 777 crore).

In a filing to the BSE, Tata Technologies confirmed that the acquisition will be completed over the next two years and includes performance based earn outs. The deal is subject to regulatory approvals and standard closing conditions.

Following the news, Tata Tech shares surged 2.7% to Rs 721 on the BSE. The stock opened higher at Rs 713, up from the previous close of Rs 701.85, and its market capitalisation crossed Rs 28,800 crore. While the stock has seen a 35% drop over the past year, recent months have shown recovery, with a 10% gain in the last six months.

ES-Tec GmbH, established in 2006 and headquartered in Wolfsburg, Germany, is known for its expertise in high end automotive engineering, especially in areas like ADAS (Advanced Driver Assistance Systems), connected driving, and digital engineering. The company has over 300 employees and posted revenues of €36 million in 2024.

Warren Harris, MD & CEO of Tata Technologies, called the acquisition a ‘strategic leap’ that boosts the company’s ability to deliver end-to-end engineering services across the automotive value chain. He said it aligns with Tata Tech’s long term growth strategy and focus on innovation.

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This move comes as the European auto sector sees rising investment in electric mobility, software defined vehicles, and driver assistance systems. The Engineering Services Provider (ESP) market in Europe is expected to more than double by 2030 from €4.5 billion in 2020 to €11.7 billion, offering major opportunities for players like Tata Technologies.