Tata Technologies today announced that it has entered into a definitive agreement to acquire Escenda Engineering AB.
The acquisition helps Tata Technologies accelerate its plans to expand in Europe due to the rapid growth opportunity the region offers in both the automotive and industrial machinery sectors.
Europe's automotive industry is the world's leading producer of motor vehicles by volume and is also the largest private investor in R&D in Europe.
Following the acquisition, Escenda Engineering will become a wholly owned subsidiary of Tata Technologies Europe Limited. The company will maintain the same management team and full workforce under the new ownership.
Founded in 2009, Escenda Engineering is based in Gothenburg, Sweden and has quickly established itself as a leader in automotive product engineering and design.
Escenda's proven product development knowledge and history of working with top global manufacturers will deepen Tata Technologies' automotive sector expertise, expand the company's facilities in Sweden, add strong local leadership, and further grow capabilities through key partnerships in Sweden.
Through this acquisition, Tata Technologies will leverage its global expertise in engineering services to support key accounts in Sweden and the European market and help them create better products for their customers.
Speaking on the agreement, Warren Harris, Chief Executive Officer of Tata Technologies, said: "Tata Technologies is always looking to evolve, innovate and ultimately grow our value proposition with our most important customers. Our new colleagues in Europe are some of the world's finest engineers and we are united by a shared vision to bring better products to the market for our customers and for the millions of people around the world who benefit from them."
"The acquisition of Escenda is another boost to our international footprint as well as our capabilities in the automotive sector, where we already support a range of global OEMs. The deal showcases Tata Technologies' ability, confidence and commitment to continue to grow and enhance our international operations," he added.
Stefan Wedin, Chief Executive Officer of Escenda Engineering AB, said, "We are delighted to become a part of the Tata Technologies' family and support their ambitious growth strategy in Europe. We look forward to working together and supporting pioneering projects through our combined deep industry knowledge and innovative approaches to product development."
The acquisition is an essential component in Tata Technologies' European growth strategy and follows the recent USD 26 million investment in the development of a new European headquarters in the UK.
Escenda Engineering's revenue has grown by approximately 230 percent across the last four years. In 2016, Escenda Engineering was awarded the Volvo Quality Excellence Award, an annual accolade given to partners who fulfilled and met the highest standards and demands of Volvo Cars.
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