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Cognizant on Thursday announced that it is acquiring Germany-based ESG Mobility, a digital automotive engineering R&D provider for connected, autonomous and electric vehicles, to expand its expertise in this space. Financial details of the acquisition were not disclosed.
The acquisition will extend Cognizant’s capabilities in digital automotive engineering R&D, including in smart and connected mobility.
In a press release, Cognizant said, “Acquiring 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.”
It also added that the European Commission’s Third Mobility Package is among the growth drivers, which requires development of safe, clean, connected cars and autonomous and electric vehicles, as well as all new vehicles to be connected to the internet by 2022.
ESG Mobility is a wholly owned subsidiary of ESG Elektroniksystem and Logistik- GmbH, a privately held technology consultancy for the design, integration and operation of complex, security-related electronic and IT systems.
Post the closure of acquisition, approximately 1,000 engineering R&D specialists will join Cognizant in the automotive innovation hubs of Germany, the US and China, the company said.
“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,” Malcolm Frank, President of Digital Business and Technology, Cognizant was quoted in the release.
Upon closure of the acquisition, Cognizant and ESG Mobility will provide engineering services to eight of the world’s top 10 automotive original equipment manufacturers (OEM).
The transaction is expected to close in the second quarter of 2021, subject to the completion of closing conditions. Upon completion, ESG Mobility employees will become part of Cognizant’s Internet of Things (IoT) and Engineering Services Practice.
The ESG Mobility transaction marks Cognizant’s fourth acquisition in 2021, and 13th acquisition since January 2020, which are spread over its key digital focus areas including cloud, data and artificial intelligence, digital engineering and IoT.
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