NEW DELHI : Technology major Cognizant on Thursday announced the acquisition of Munich, Germany-based ESG Mobility, a digital automotive engineering R&D provider for connected, autonomous and electric vehicles.
Upon completion of the acquisition, nearly 1,000 engineering R&D specialists will join Cognizant in automotive innovation hubs in Germany, the United States and China, the IT company said in a statement.
Cognizant and ESG Mobility will jointly provide engineering services to eight of the world’s 10 largest automotive original equipment manufacturers (OEMs).
The acquisition would expand Cognizant’s capabilities in digital automotive engineering R&D, including smart and connected mobility, the statement said, but without revealing the financial details of the transaction.
According to available estimates, the global connected car market, valued at around $ 63 billion in 2019, is expected to exceed $ 225 billion by 2027.
ESG Mobility is a 100% subsidiary of ESG Elektroniksystem – and Logistik – GmbH, a private technology consultancy firm for the design, integration and operation of complex electronic and IT systems related to security. 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.
“The acquisition of ESG Mobility will expand Cognizant’s automotive engineering expertise, particularly in connected vehicles,” the Cognizant statement said.
Among the growth, the drivers are the European Commission’s third mobility package, which demands 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.
Commenting on the acquisition, Malcolm Frank, President of Digital Business and Technology, Cognizant said the automotive industry is undergoing fundamental change, embracing new mobility concepts that rely heavily on software, connectivity and artificial intelligence.
“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,” added Frank .
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.
It is relevant to mention here that 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 such as cloud, data and artificial intelligence. , digital engineering and the Internet of Things (IoT).
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