Tech major Cognizant today announced the acquisition of Germany-based ESG Mobility, which is a digital automotive engineering R&D provider for various electric vehicles.
“Acquiring ESG Mobility will expand Cognizant’s automotive engineering expertise, particularly in connected vehicles,” Cognizant said in a statement.
The firm, however, did not divulge the financial details of the transaction. This is the fourth acquisition of Cognizant this year, and 13th since January 2020.
The transaction is expected to close in the second quarter of 2021 and ESG Mobility employees will become part of Cognizant’s Internet of Things (IoT) and Engineering Services Practice.
The acquisition would extend Cognizant’s capabilities in digital automotive engineering R&D including in smart, connected mobility.
The acquisition will also see nearly 1,000 engineering R and D specialists joining Cognizant in the automotive innovation hubs of Germany, the US and China, the firm said in a statement.
Both the firms will provide engineering services to eight of the world’s top 10 automotive original equipment manufacturers.
Talking about the acquisition, Malcolm Frank, President of Digital Business and Technology, Cognizant said that the automotive industry is undergoing a fundamental shift, embracing new mobility concepts that rely heavily on software, connectivity and artificial intelligence.
“Our priority is providing clients with the capabilities they need to compete as modern digital businesses, and ESG Mobility is a natural complement to our existing connected mobility offerings and global delivery model,” Frank added.
As per estimates, the globally connected car market which was valued at about $63 billion in 2019, is projected to surpass $225 billion by 2027.
