Cognizant announced that the company is acquiring German Digital Automotive Engineering R&D provider, ESG Mobility for connected, autonomous, and Electric vehicles, to extend its expertise in the said sector.
ESG mobility is a wholly-owned subsidiary of ESG Elektronik system and Logistik -GmbH, a privately-held technology consultancy for the design, integration, and operation of complex, security-related electronic and IT systems.
This acquisition will extend Cognizant’s capabilities in digital automotive engineering R&D, including intelligent, connected mobility, and electric vehicles.
It will acquire approx. one thousand engineering R&D specialists in the automotive innovation hubs of Germany, the US, and China.
The acquisition and related transactions are supposed to be closed in the second quarter of 2021; following acquisition ESG Mobility employees will become Cognizant’s Internet of Things (IoT) and Engineering Services Practise. Cognizant did not reveal the financial details of the deal.
Executive’s perspective –
President of Digital Business and Technology of Cognizant Malcolm Frank said that the automotive industry is experiencing a fundamental shift, embracing new concepts that rely on software, connectivity, and AI. “Priority is providing clients with capabilities needed to compete as modern digital businesses, and ESG mobility is a natural complement to our existing associated mobility offerings and global delivery model,” he said.
Jorg Ohlsen, CEO of ESG Mobility, said, “We have to build together a world-class team of Engineering R&D and Tech-consultants who understand our global clients; by joining Cognizant, we can provide high-quality service, build more innovative products, and support a broad range of digital initiatives for customers.”
The ESG mobility acquisition is the fourth takeover of Cognizant this year. The 13th acquisition from January 2020 spread over its principal digital focus areas, including cloud, data, Artificial Intelligence, Digital Engineering, and IoT.
According to Allied Market Research, the globally connected Car market was valued at 63 billion USD in 2019 and forecasted to reach more than 225 billion USD by 2027
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