Cognizant Technology Solutions Corp on Thursday said it is acquiring Germany-based ESG Mobility, a digital automotive engineering provider for connected, autonomous and electric vehicles.
Upon the close of the acquisition, approximately 1,000 engineering research and development (R&D) specialists will join Cognizant in the automotive innovation hubs of Germany, the US and China.
The transaction is expected to close in the second quarter of 2021. Financial details were not disclosed.
The ESG Mobility transaction marks Cognizant’s fourth acquisition in 2021, and 13th acquisition since January 2020, further expanding its capabilities in key digital focus areas of cloud, data and artificial intelligence (AI), digital engineering, and internet of things (IoT).
“Acquiring ESG Mobility will expand Cognizant’s automotive engineering expertise, particularly in connected vehicles," Cognizant said in a statement.
The global connected car market is projected to reach more than $225 billion by 2027 from $63 billion in 2019, according to Allied Market Research. Among the growth drivers is the European Commission’s Third Mobility Package, which requires development of safe, clean, connected cars and autonomous and electric vehicles, as well as all new vehicles to 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 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.
ESG Mobility provides services across the 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.
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