TCS to Buy Porsche IT Unit MHP for $373 Million
Tata Consultancy Services (TCS) has agreed to acquire Porsche’s management and IT consulting subsidiary MHP in a deal valued at €320 million, or about $373 million. The acquisition forms part of a broader five-year strategic partnership between TCS and Porsche worth €1.25 billion, or roughly $1.46 billion.
TCS to Acquire Porsche IT Consultancy MHP
TCS will acquire 100% of Germany-based MHP Management- und IT-Beratung through a subsidiary, strengthening the Indian technology company’s presence in Germany and the wider European automotive market.
MHP employs more than 4,500 people worldwide and specialises in automotive and industrial consulting, artificial intelligence, SAP, manufacturing digitalisation and connected mobility.
The transaction remains subject to regulatory and competition approvals and is expected to close in the coming months. MHP will retain its existing brand and continue operating as an independent consultancy under TCS ownership.
TCS Porsche Deal Includes Five-Year AI Partnership
Alongside the acquisition, TCS and Porsche have entered a five-year strategic agreement worth €1.25 billion.
TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche, aimed at deploying artificial intelligence across engineering, manufacturing, operations and customer experience.
The partnership will combine Porsche’s automotive expertise with TCS capabilities in AI, engineering, software and business transformation.
Porsche Sharpens Focus on Core Auto Business
Porsche said selling MHP forms part of its strategy to concentrate more closely on its core automotive operations while retaining access to MHP’s digital expertise through the long-term TCS partnership.
For TCS, the acquisition expands its automotive consulting capabilities at a time when global carmakers are investing heavily in artificial intelligence, software-defined vehicles and digitally connected manufacturing.
The deal also comes as India’s major IT services companies increasingly pursue acquisitions and AI-led contracts to generate growth amid more cautious global technology spending.
