Cognizant to acquire ESG Mobility in latest move to increase its stack in autonomous, connected and electric vehicles

Cognizant, in an effort to extend its capabilities in autonomous, connected and electric vehicles, announced Thursday that it is acquiring Munich-based ESG Mobility, a digital automotive engineering research & development provider for the vehicles.

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 information technology systems.

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 and Engineering Services Practice. Financial details were not disclosed.

Upon the close of the acquisition, approximately 1,000 engineering R&D specialists will join Cognizant in the automotive innovation hubs in the U.S., Germany and China.

Cognizant and ESG Mobility together, upon the close of the acquisition, will provide engineering services to eight of the world’s top 10 automotive original equipment manufacturers.

Cognizant is based in Teaneck.

Malcolm Frank, Cognizant’s president of Digital Business and Technology, said the deal will help the company stay ahead in the quickly growing industry.

“The automotive industry is undergoing a fundamental shift, embracing new mobility concepts that rely heavily on software, connectivity and artificial intelligence,” he 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.

“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.”

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. Among the growth drivers is the European Commission’s Third Mobility Package, 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 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.

The ESG Mobility transaction marks Cognizant’s fourth acquisition in 2021, and 13th acquisition since January 2020, further expanding its capabilities in key digital focus areas of cloud, data and artificial intelligence, digital engineering and IoT.