IT services major Cognizant Technology Solutions Corp. is acquiring Munich, Germany-based ESG Mobility, a digital automotive engineering solutions provider for connected, autonomous and electric vehicles, it said on Thursday.
On completion of the proposed acquisition in the second quarter of 2021, around 1,000 research and development (R&D) specialists will join Cognizant in the automotive innovation hubs of Germany, the US and China. The company, however, did not disclose the financial details of the transaction.
ESG Mobility will be Cognizant’s fourth acquisition in 2021, and 13th since January 2020, as it expands its capabilities in key digital businesses of cloud, data and artificial intelligence, digital engineering and internet of things (IoT).
“Acquiring ESG Mobility will expand Cognizant’s automotive engineering expertise, particularly in connected vehicles,” the company said.
The global connected car market is projected to breach the $225 billion mark by 2027 from $63 billion in 2019, according to Allied Market Research. The growth is being driven by European Commission’s Third Mobility Package, which mandates the development of safe, clean and connected cars, as well as electric and autonomous vehicles. All new vehicles must 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, digital business and technology, Cognizant. “Our priority is providing clients with the capabilities they need to compete as modern digital businesses. ESG Mobility is a natural complement to our existing connected mobility offerings,” he added.
ESG Mobility provides solutions to the entire automotive software stack. It specializes in electrical and electronic systems and emerging capabilities for electric vehicles.
