Teaneck, New Jersey based IT (information technology) services major Cognizant on Thursday said that it will acquire automotive engineering solutions provider ESG Mobility.
Munich headquartered ESG Mobility is a subsidiary of ESG Elektroniksystem - und Logistik, which is a private technology consultancy for design, integration and operation of complex, security related electronic and IT systems. ESG mobility mostly caters to solutions for connected, autonomous and electric vehicles.
Financial details of the transaction, which is expected to close in the second quarter of 2021, were not disclosed.
The acquisition marks Cognizant's fourth such deal in 2021. It bought three companies in January, including DevOps provider Magenic Technologies, ServiceNow solutions provide Linium, and Australian data analytics and artificial intelligence solutions provider Serviana.
“This acquisition will empower our clients to innovate more quickly in shaping the future of transportation. We look forward to welcoming ESG Mobility's talented team to Cognizant," Malcolm Frank, president of digital business and technology, Cognizant.
Upon the completion of the acquisition, close to 1,000 engineers from the company are expected to join Cognizant in its automotive innovation hubs in Germany, US and China. Frank added that Cognizant will be catering to eight of the world’s top ten automotive original equipment manufacturers upon completion of the deal, while also expand its automotive engineering expertise in the field of connected vehicles.
According to data from research firm Allied Market Research, the connected car market was valued at $63 billion In 2019 and is projected to cross the $225 billion mark by 2027. Cognizant is also betting on the European Commission’s Third Mobility Package, which calls for the development of safe, clean, connected and autonomous electric vehicles. These vehicles are also required to be connected to the internet by 2022.
"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,” said Jörg Ohlsen, Chief Executive Officer, ESG Mobility.