Cognizant buys 1,000-strong automotive group ESG Mobility

Munich-based ESG Mobility has been snapped up by global technology consulting group Cognizant for an undisclosed sum. 

The deal will see approximately 1,000 engineering R&D specialists join Cognizant in Germany, the US and China upon closing, making it one of Cognizant’s larger transactions of the past years. The bolt-on continues Cognizant’s bold buy-and-build campaign, with over 30 acquisitions closed worldwide in the past five years.

Founded in 1967, ESG Mobility is a company specialised in engineering services for connected, autonomous and electric vehicles. The firm is a wholly-owned subsidiary of privately-held technology consultancy ESG Elektroniksystem-und Logistik, meaning that ESG Mobility will be carved out from the group. 

“ESG Mobility is a natural complement to our existing connected mobility offerings and global delivery model. This acquisition will empower our clients to innovate more quickly in shaping the future of transportation,” said Malcolm Frank, President of Digital Business and Technology at Cognizant. 

The acquisition comes at a time of major growth for the connected, autonomous and electric vehicles market. Billions in revenues will in the coming years be added to the market as demand peaks, and Cognizant is beefing up its capabilities in anticipation of this trend. The firm works for major automotive manufacturers and original equipment manufacturers globally. 

Meanwhile, for ESG Mobility, “by joining Cognizant, we can provide a higher quality of service, build more innovative products and support a broader range of digital initiatives for our current and future customers,” said the firm’s Chief Executive Officer Jörg Ohlsen. 

Earlier this month, one of Cognizant’s major rivals, Accenture, also closed an acquisition in Germany.