Cognizant has agreed to acquire Munich, Germany-based ESG Mobility, a digital automotive engineering R&D provider for connected, autonomous and electric vehicles.
Cognizant will absorb approximately 1,000 engineering R&D specialists in the automotive innovation hubs of Germany, the US and China. The transaction is expected to close in the second quarter of 2021. ESG Mobility employees will become part of Cognizant’s Internet of Things (IoT) and Engineering Services Practice.
ESG Mobility will expand Cognizant’s automotive engineering expertise, particularly in connected vehicles.
The global connected car market was valued at approximately $63 billion in 2019, and is projected to reach more than $225 billion by 2027, according to Allied Market Research.
“Our priority is providing the capabilities clients need to compete as modern digital businesses, and ESG Mobility is a natural complement to our existing connected mobility offerings and global delivery model,” said Malcolm Frank, president of Digital Business and Technology, Cognizant.
Cognizant and ESG Mobility together will provide engineering services to eight of the world’s top 10 automotive original equipment manufacturers (OEM).
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.
Financial details were not disclosed. The ESG Mobility transaction marks Cognizant’s fourth acquisition in 2021, and 13th acquisition since January 2020, expanding its capabilities in key digital focus areas of cloud, data and artificial intelligence, digital engineering and IoT.