IT service provider Cognizant has announced the acquisition of ESG Mobility. With this, the company wants to gain more expertise in the world of automotive.
When the acquisition is completed, about 1,000 specialists in engineering and R&D will join Cognizant, the company says in a press release. These employees will work in innovation hubs in Germany, the US and China.
With the acquisition of ESG Mobility, Cognizant wants to expand its knowledge in the field of automotive engineering, especially in the area of connected vehicles. The company says the market for these connected cars was worth 63 billion dollars (53 billion euros) in 2019 and is expected to grow to 225 billion dollars (190 billion euros) by 2027.
“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. This acquisition will empower our clients to innovate more quickly in shaping the future of transportation. We look forward to welcoming ESG Mobility’s talented team to Cognizant.”
ESG Mobility is a subsidiary of ESG Elektroniksystem – and Logistik – GmbH. This company is engaged in technology consultancy for the design, integration and operation of complex security-related electronic and IT systems. ESG Mobility focuses specifically on the automotive industry and the electrical engineering involved.
Cognizant says that upon completion of the acquisition, the two companies will jointly provide engineering services to eight of the ten largest automotive OEMs. Which OEMs these are is not mentioned.
“We have built a world-class team of engineering R&D and technology consultants who deeply understand our automotive clients in Germany and around the world,” said Jörg Ohlsen, Chief Executive Officer, 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. We look forward to using our vast automotive industry experience to create a more connected, mobile world.”
The acquisition is due to be completed in the second quarter of 2021. How much Cognizant is paying for the acquisition is not known.
Tip: Cognizant acquires New Signature, their fifth acquisition in 2020