Global IT consulting firm Cognizant has acquired ESG Mobility, a digital automotive engineering R&D provider for connected, autonomous and electric vehicles. Financial details were not disclosed.
This is technology M&A deal number 199 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
This is Cognizant's fourth acquisition of 2021, and 13th business purchase since January 2020. The deals have typically involved cloud, data and artificial intelligence, digital engineering and IoT.
The ESG Mobility deal is expected to close in Q2 of 2021. At that time, roughly 1,000 ESG Mobility employees will tuck into Cognizant's Internet of Things (IoT) and Engineering Services Practice. Those employees will join Cognizant's automotive innovation hubs of Germany, the US and China.
Cognizant and ESG Mobility together will provide engineering services to eight of the world's top 10 automotive original equipment manufacturers (OEM), the buyer notes.
Cognizant Acquires ESG Mobility: Executive Perspectives
In a prepared statement about the deal, Malcolm Frank, president of digital business and technology, Cognizant, said:
"The automotive industry is undergoing a fundamental shift, embracing new mobility concepts that rely heavily on software, connectivity and artificial intelligence. 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."
Added ESG Mobility CEO Jörg Ohlsen:
"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."
Global IT Consulting Firms: Technology Services Acquisitions
M&A activity among global IT consulting firms, systems integrators and public cloud MSPs continues to accelerate. Active buyers include Accenture, Atos, IBM, NTT Data, and multiple private equity firms.
The M&A land grabs typically involve cloud, big data analytics, cybersecurity, SaaS application and DevOps expertise.