Tata Technologies Shares Rise After €75 Million Acquisition Of German Auto Engineering Firm

Tata Technologies gained in early trade on Monday after the company acquired Germany-based automotive technologies company ES-Tec Group for €75 million.

The deal, to be completed over the next two years through a mix of upfront payments and performance-based earn-outs, is expected to be EPS accretive for Tata Technologies from the first full year of operations, according to a press release dated September 13.

Tata Technologies' shares gained 2.5% to ₹720 in early trade. The stock had declined for the last two sessions.

Why Did Tata Tech Acquire This German Company?

ES-Tec Group specializes in advanced automotive domains, including autonomous driver assistance systems (ADAS), connected driving, and digital engineering.

The acquisition benefits Tata Technologies not only from an engineering research and development (ER & D) standpoint, but it also expands the company's European footprint.

“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,” said Warren Harris, MD & CEO of Tata Technologies.

“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. The integration of ES-Tec Group will significantly enhance Tata Technologies' ER & D capabilities, particularly in embedded systems, electronics, and systems engineering,” Harris added.

Analyst Take

ES-Tec reported a €36 million revenue in 2024 and employs over 300 engineers specializing in ADAS, Connected Driving, and Digital Engineering. The acquisition, expected to close by December 2025, is expected to be EPS accretive from the first year and will expand Tata Technologies' ER & D capabilities while strengthening its European presence, according to Saurabh Sahu, a SEBI-registered analyst.

What Is The Retail Mood?

While there was 'high' retail chatter on Stocktwits, sentiment remained 'bearish' on the platform. It was 'neutral' last week.

The stock has shed nearly 20% of its value so far this year.

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