Tata Tech shares rise nearly 3% on deal to acquire German firm ES-Tec GmbH

Shares of Tata Technologies , a global product engineering and digital services company, climbed nearly 3% in opening trade on Monday after the company signed a deal to acquire German firm ES-Tec GmbH. The Tata Group company has entered into an agreement to acquire 100% equity shares of ES-Tec GmbH and its subsidiaries for a total cash consideration of €75 million (₹777 crore), it said in a BSE filing.

Cheering the news, Tata Technologies shares gained as much as 2.7% to ₹721 on the BSE, while its market capitalisation rose to ₹28,882 crore. The stock opened 1.58% higher at ₹713 against the previous closing price of ₹701.85.

The shares had touched a 52-week high of ₹1,135 on September 20, 2024, and slipped to a 52-week low of ₹595.05 on April 7, 2025. The stock has delivered a negative return of 35% over the past one year and lost over 20% year-to-date (YTD). However, it has risen nearly 10% in the last six months and added almost 6% in the past month.

In an exchange filing on September 13, Tata Technologies said it had signed a deal to acquire 100% stake in ES-Tec GmbH and its subsidiaries (collectively, ES-Tec Group), which is engaged in high-end automotive engineering services with expertise in ADAS, connected driving, and digital engineering.

Established in 2006 and headquartered in Wolfsburg, Germany, ES-Tec Group generated revenues of €36 million in 2024 and employs over 300 people.

The deal consideration of ₹777 crore will be paid over the next two years and includes performance-based earn-outs. The transaction is subject to customary closing conditions and regulatory approvals, Tata Technologies said in the filing.

Tata Technologies said it remains committed to investing in innovation, talent, and customer success as it continues to expand its global footprint and deliver differentiated value to partners.

“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,” the release stated.

“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 expanding our global footprint by accessing innovative engineering capabilities,” said Warren Harris, MD & CEO of Tata Technologies.

According to the release, the automotive industry is undergoing a profound transformation, with European OEMs accelerating R&D investments in ADAS/AD, electrification, and software-defined vehicle platforms. Consequently, the market for Engineering Service Providers (ESPs) in Europe is projected to grow from €4.5 billion in 2020 to €11.7 billion by 2030.

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