Benzinga | Mar 25, 2021 09:25AM EDT

Cognizant Acquires Germany's ESG Mobility To Accelerate Autonomous And EV Expertise

Cognizant Technology Solutions Corp (NASDAQ: CTSH) announced the acquisition of Munich, Germany-based digital automotive engineering R&D provider for connected, autonomous, and electric vehicles (EV) ESG Mobility. The financial terms of the transaction remain undisclosed.

* ESG Mobility is a subsidiary of technology consultancy for the design, integration, and operation of complex, security-related electronic and IT systems ESG Elektroniksystem and Logistik GmbH.

* ESG Mobility's key strengths included electrical and electronic systems and connected vehicle applications, and emerging capabilities for autonomous and EVs.

* The globally connected car market is projected to reach over $225 billion by 2027.

* European Commission's Third Mobility Package's required development of safe, clean, connected cars and autonomous and EVs, along with internet connection by 2022, would be a significant growth driver for the acquisition.

* Cognizant and ESG Mobility would provide engineering services to eight of the world's top 10 automotive original equipment manufacturers (OEM).

* The acquisition marked Cognizant's fourth acquisition in 2021 and 13th acquisition since January 2020, further expanding its abilities in key digital focus areas of cloud, data and artificial intelligence, digital engineering, and IoT.

* Cognizant's cash and cash equivalents amounted to $2.7 billion as of December 31, 2020.

* CTSH stock has gained 66% in the last year.

* Price action: CTSH shares are trading lower by 0.27% at $76.73 in the premarket session on the last check Thursday.