TEANECK, N.J., March 25, 2021 /PRNewswire/ -- Cognizant (Nasdaq:
CTSH) today announced that it is acquiring Munich, Germany-based ESG Mobility, a digital
automotive engineering R&D provider for connected, autonomous
and electric 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 IT systems. Upon the close
of the acquisition, approximately 1,000 engineering R&D
specialists will join Cognizant in the automotive innovation hubs
of Germany, the US and
China.
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.
"The automotive industry is undergoing a fundamental shift,
embracing new mobility concepts that rely heavily on software,
connectivity and artificial intelligence," said Malcolm Frank, President of Digital Business and
Technology, Cognizant. "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."
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
(OEM).
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.
"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."
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.
Financial details were not disclosed.
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.
Learn More
ESG Mobility website
Cognizant IoT Solutions website
About ESG Mobility
ESG Mobility has been providing know-how to automobile
manufacturers and suppliers with locations around the world for
almost 30 years. The starting shot in the automotive industry was
given in 1984. This was followed by the consistent expansion of the
automotive division with projects for BMW and other well-known
German OEMs. Long-term partnerships connect us to the present day.
Even today, the technology transfer between the industries
distinguishes us and provides the decisive competitive advantage.
In automotive, the focus is on highly complex technologies and
increasingly networked systems. We will continue to expand this
lead in the future and be an engineering partner, process know-how
carrier, technology consultant and IT expert all rolled into
one.
About Cognizant
Cognizant (Nasdaq-100: CTSH) is one of the world's leading
professional services companies, transforming clients' business,
operating and technology models for the digital era. Our unique
industry-based, consultative approach helps clients envision, build
and run more innovative and efficient businesses. Headquartered in
the US, Cognizant is ranked 194 on the Fortune 500 and is
consistently listed among the most admired companies in the world.
Learn how Cognizant helps clients lead with digital
at www.cognizant.com or follow us @Cognizant.
Forward-Looking Statements
This press release includes statements which may constitute
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
the accuracy of which are necessarily subject to risks,
uncertainties and assumptions as to future events that may not
prove to be accurate. These statements include, but are not limited
to, express or implied forward-looking statements relating to
expectations regarding the anticipated closing of the acquisition
of ESG Mobility and the impact of the acquisition of ESG Mobility
on the business and prospects of Cognizant. These statements are
neither promises nor guarantees but are subject to a variety of
risks and uncertainties, many of which are beyond our control,
which could cause actual results to differ materially from those
contemplated in these forward-looking statements. Existing and
prospective investors are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. Factors that could cause actual results to differ
materially from those expressed or implied include general economic
conditions, changes in the regulatory environment, including with
respect to immigration and taxes, and the other factors discussed
in our most recent Annual Report on Form 10-K and other filings
with the Securities and Exchange Commission. Cognizant undertakes
no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise, except as may be required under applicable securities
law.
For further information, contact:
US:
Jodi
Sorensen
jodi.sorensen@cognizant.com
|
Europe:
Christina
Schneider
christina.schneider@cognizant.com
|
Asia-Pacific:
Harsh
Kabra
harsh.kabra@cognizant.com
|
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SOURCE Cognizant