Tata Technologies shares will react to €75 million acquisition that boosts revenue growth, EPS accretive
Published on 15/09/2025 04:54 AM
Tata Technologies shares will react to €75 million acquisition that boosts revenue growth, EPS accretiveTata Technologies believes that the acquisition enhances the company's engineering, R&D, ER&D capabilities, particularly within next-generation mobility technology.By Reema Tendulkar | Hormaz Fatakia September 15, 2025, 4:54:52 AM IST (Published)2 Min ReadTata Technologies Ltd., the recently listed Tata Group enterprise, announced the strategic acquisition of ES-Tec Group, Germany, over the weekend, for a total cash consideration of €75 million.
The acquisition is said to be accretive to Tata Technologies' Earnings Per Share from the first full year itself after completion. The transaction is likely to be completed by December 31, 2026.
The consideration for the acquisition will be paid over the next two years, and also includes performance-based payouts.
Analysts believe that ES-Tec will contribute nearly 8% to Tata Technologies' topline going forward.
Tata Technologies believes that the acquisition enhances the company's engineering, R&D, ER&D capabilities, particularly within next-generation mobility technology.
This will also boost Tata Technologies' presence in Germany, with access to strong talent in systems engineering.
There are also potential synergies for cross-selling, leveraging complementary customer bases and tapping into OEM accounts.
"ES-Tec’s technical depth, customer centricity, and regional strength align perfectly with our strategic vision to be the first partner choice for global OEMs navigating the shift towards intelligent, connected, and sustainable mobility," Warren Harris, MD & CEO of Tata Technologies said.
The acquired company is into the business of providing high-end automotive engineering services, with deep expertise in Advanced Diver-Assistance Systems (ADAS), connected driving and digital engineering.
Shares of Tata Technologies ended little changed last Friday at ₹702.85. The stock is down 21% so far in 2025, down 50% from its all-time high of ₹1,400, but above its IPO price of ₹500.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsacquisitionshare market todayTata Group StocksTata Technologies