TCS Acquires Porsche's Consulting Arm MHP for €320 Million, Signs €1.25 Billion Deal
TCS is acquiring Porsche's consulting subsidiary, MHP, for €320 million. This is part of a strategic partnership with Porsche, which includes a five-year deal worth €1.25 billion. The acquisition aims to drive AI transformation in the automotive sector and is expected to close in 3-4 months, pending regulatory approvals.
The acquisition of a significant consulting firm like MHP and the large strategic deal with a major automotive player like Porsche will have a considerable impact on TCS's market position, revenue, and future growth trajectory in the AI and automotive technology space.
The acquisition of MHP and the strategic partnership with Porsche are positive developments for TCS, indicating growth opportunities and expansion in the automotive AI sector. The substantial deal value further reinforces the positive outlook.
Tata Consultancy Services (TCS) has announced a strategic partnership with Porsche AG, which includes the acquisition of 100% of the equity shares of MHP Management - und IT -Beratung GmbH (MHP), Porsche's Germany-based management and IT consulting subsidiary. The enterprise value for this acquisition is €320 million.
This acquisition is a key part of a strategic partnership between TCS and Porsche aimed at driving AI transformation, anchored in next-generation manufacturing technologies and software-defined mobility. As part of this partnership, Porsche has signed a five-year strategic deal with MHP and TCS amounting to €1.25 billion.
MHP is a leading automotive and industrial consulting firm with expertise in business consulting, digital transformation, AI, SAP transformation, manufacturing digitalization, and connected and software-defined mobility. The company has a turnover of €742 million as of CY2025 and approximately 4,500 employees. MHP has a presence in Germany, Romania, the UK, the USA, India, and Mexico.
The acquisition is expected to be completed within 3-4 months, subject to regulatory approvals, including those from the European Commission, EU Foreign Subsidies Regulation, and Romanian foreign direct investment law. A certificate of non-objection will also be sought from the German Federal Ministry of Economy and Energy.
TCS' CEO and Managing Director, K. Krithivasan, stated that the partnership will industrialize AI at scale for Porsche, accelerating innovation across the value chain. Dr. Michael Leiters, CEO of Porsche AG, noted that this partnership combines Porsche's automotive expertise with TCS' digital technology and AI capabilities to enhance innovation, efficiency, and competitiveness.
TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche to drive innovation across manufacturing, engineering, operations, and customer experience. This collaboration aims to convert AI ideas into secure and scalable solutions, embedding AI across intelligent manufacturing, operations, engineering, and customer experience.
A plain-language summary of a public exchange filing by Tata Consultancy Services Limited. Read the original for the full detail.