Automotive engineering

Cognizant acquires EGS Mobility to expand its expertise in automotive engineering

Cognizant, based in Teaneck, acquires ESG Mobility, based in Munich, Germany, a provider of digital automotive engineering R&D for connected, autonomous and electric vehicles. ESG Mobility is a 100% subsidiary of ESG Elektroniksystem – and Logistik – GmbH, a private technology consultancy company for the design, integration and operation of complex electronic and IT systems related to security. Upon closing of the acquisition, approximately 1,000 engineering R&D specialists will join Cognizant in automotive innovation clusters in Germany, the United States and China.

The acquisition of ESG Mobility will extend Cognizant’s automotive engineering expertise, particularly in connected vehicles. The global connected car market was valued at around $ 63 billion in 2019 and is expected to grow to over $ 225 billion by 2027, according to Allied Market Research. Among the growth engines is the European Commission’s third mobility package, which calls for the development of safe, clean and connected cars and autonomous and electric vehicles, as well as all new vehicles that will be connected to the internet by 2022.

“The automotive industry is undergoing a fundamental shift, embracing new mobility concepts that rely heavily on software, connectivity and artificial intelligence,” said Malcolm Frank, president of Digital Business and Technology, Cognizant. “Our priority is to provide customers 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 our global delivery model. This acquisition will allow our customers to innovate faster to shape the future of transportation. We look forward to welcoming the talented ESG Mobility team to Cognizant.

Cognizant and ESG Mobility will jointly provide engineering services to eight of the world’s 10 largest automotive original equipment manufacturers (OEMs) upon closing of the acquisition.

ESG Mobility provides services across the entire automotive software stack with key strengths in electrical and electronic systems and connected vehicle applications, as well as emerging capabilities for autonomous and electric vehicles.

“We have built a world-class team of R&D and engineering technology consultants who fully understand our automotive customers in Germany and around the world,” said Jörg Ohlsen, CEO of ESG Mobility. “By joining Cognizant, we can provide better service, create more innovative products and support a wider range of digital initiatives for our current and future customers. We look forward to using our vast experience in the automotive industry to create a more connected and mobile world. “

The transaction is expected to close in the second quarter of 2021, subject to the fulfillment of closing conditions. Upon completion, ESG Mobility employees will become part of Cognizant’s Internet of Things (IoT) practice and engineering services. Financial details were not being disclosed.

The ESG Mobility transaction marks Cognizant’s fourth acquisition in 2021 and the 13th acquisition since January 2020, further expanding its capabilities in key digital areas of cloud, data and artificial intelligence, digital engineering and IoT.

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