US-based technology company Cognizant has agreed to acquire ESG Mobility, a German company offering research and development (R&D) for connected, autonomous and electric vehicles (EVs).

The acquisition forms part of Cognizant’s strategy to enhance its capabilities in digital automotive engineering R&D, including in smart, connected mobility.

Cognizant and ESG Mobility will both provide engineering services to eight of the world’s top ten automotive original equipment manufacturers (OEM).

ESG Mobility will offer its expertise in electrical and electronic systems and connected vehicle applications, as well as its emerging capabilities for autonomous vehicles and EVs.

Once the deal is completed, almost 1,000 engineering R&D specialists will join Cognizant in Germany, the US and China.

The deal is expected to be completed in the second quarter of this year, subject to closing conditions being met. The financial details of the deal have not been disclosed.

Cognizant Digital Business and Technology president Malcolm Frank said: “The automotive industry is undergoing a fundamental shift, embracing new mobility concepts that rely heavily on software, connectivity and artificial intelligence.

“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.”

ESG Mobility CEO Jörg Ohlsen said: “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.

“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.”

ESG Mobility is a wholly-owned subsidiary of ESG Elektroniksystem and Logistik, a privately held consultancy for security-related electronic and IT systems.