Transaction to help Cognizant boost its expertise in automotive engineering, especially in connected vehicles
Cognizant has agreed to acquire ESG Mobility, a German digital automotive engineering research and development (R&D) provider for connected, autonomous, and electric vehicles.
The financial terms of the deal were not disclosed.
Cognizant is acquiring the company from ESG Elektroniksystem – and Logistik. The latter is a technology consultancy firm engaged in designing, integrating, and operating complex, security-related electronic and IT systems.
ESG Mobility offers services across the automotive software stack. Its main strengths are said to be in electrical and electronic systems and connected vehicle applications.
The company is also claimed to have emerging capabilities for autonomous and electric vehicles.
ESG Mobility CEO Jörg Ohlsen said: “We have built a world-class team of engineering R&D and technology consultants who deeply understand our automotive clients in Germany and around the world.
“By joining Cognizant, we can provide a higher quality of service, build more innovative products and support a broader range of digital initiatives for our current and future customers.”
Post-acquisition, nearly 1,000 engineering R&D specialists will join Cognizant to work at its automotive innovation hubs across the US, Germany, and China.
The US tech firm said that the acquisition of ESG Mobility will grow its expertise in automotive engineering, especially in connected vehicles.
Cognizant digital business and technology president Malcolm Frank said: “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. This acquisition will empower our clients to innovate more quickly in shaping the future of transportation.”
Post-acquisition, Cognizant and ESG Mobility will cater to eight major automotive original equipment manufacturers (OEM) with their engineering services.
ESG Mobility’s employees will join Cognizant’s internet of things (IoT) and engineering services practice, after the completion of the acquisition.
Subject to the meeting of closing conditions, the deal is anticipated to close in Q2 2021.
Last month, Cognizant reported revenues of $4.18bn for the fourth quarter of 2020 and $16.65bn for the full year 2020.