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 consideration will be paid over the next two years and includes performance-based earn-outs. The transaction is expected to be EPS accretive from the first full year of operations. It is expected to be completed by 31st December 2025.

'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 company stated in exchange filing.

Warren Harris, MD & CEO of 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. 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.'

Marc Wille, MD & CEO of ES-Tec said, 'Joining forces with Tata Technologies is a key step for the ES-Tec Group to extend the breadth and depth of capabilities and expand our international presence. Together, we are ready to take on the future challenges of the automotive industry ' delivering real value for our customers through competitive pricing, outstanding quality, and faster development cycles. Our goal is clear: to drive the global automotive industry forward, and together with Tata Technologies, become a partner of choice for the mobility sector.'

Tata Technologies is a global product engineering and digital services company. The company has reported 5.1% increase in consolidated net profit to Rs 170.3 crore despite a 1.9% fall in revenue from operations to Rs 1,244.3 crore in Q1 FY26 as compared with Q1 FY25.

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