Tata Technologies has announced that it has entered into a definitive agreement to acquire Swedish engineering and design specialist, Escenda Engineering AB. This acquisition will help Tata Technologies accelerate its plans to expand in Europe due to the rapid growth opportunity the region offers in both automotive and industrial machinery sectors, the company noted. Europe’s automotive industry is said to be the 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 Ltd. The company will continue to maintain the same management team and full workforce under the new ownership, it was said. 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 customers. This acquisition is claimed to be an essential component in Tata Technologies’ European growth strategy, following the recent $ 26 mn investment in development of a new European headquarters in the UK.
Escenda Engineering was founded in 2009 and is based in Gothenburg, Sweden, establishing itself as a leader in automotive product engineering and design, Tata Technologies said. The Swedish company’s product development knowledge and history of working with top global manufacturers is expected to deepen Tata Technologies’ automotive sector expertise. It will also expand the company’s facilities in Sweden, add strong local leadership, and further grow capabilities through key partnerships in Sweden, added Tata Technologies.
Warren Harris, CEO, Tata Technologies, said the company is always looking to evolve, innovate and ultimately grow its value proposition with its most important customers. He added that the new colleagues from Escenda are some of the world’s finest engineers, and both companies are united by a shared vision to bring better products to the market. “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,” said Harris.
The company is delighted to become a part of the Tata Technologies’ family and support their ambitious growth strategy in Europe, noted Stefan Wedin, CEO, Escenda Engineering AB. He said Escenda Engineering looks forward to working together and supporting pioneering projects through their combined deep industry knowledge and innovative approaches to product development.