TCS to acquire Porsche unit MHP for €320 million, seals €1.25 billion AI deal
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Tata Consultancy Services (TCS) will acquire 100% of MHP Management- und IT-Beratung GmbH, Porsche AG’s management and IT consulting subsidiary, for an enterprise value of €320 million, as part of a broader five-year strategic partnership with the German luxury carmaker worth €1.25 billion.
The acquisition, approved by the board of TCS Netherlands B.V., a wholly owned subsidiary of TCS, involves an all-cash transaction. The deal remains subject to regulatory approvals and other conditions precedent and is expected to be completed within three to four months.
Acquisition to strengthen TCS’ automotive capabilities
MHP, headquartered in Ludwigsburg, Germany, is an automotive and industrial consulting firm with expertise spanning business consulting, digital transformation, artificial intelligence, SAP transformation, manufacturing digitalisation, connected mobility and software-defined mobility.
The company, incorporated in 1996, is fully owned by Porsche AG and employs around 4,500 people. MHP reported turnover of €742 million in calendar year 2025, compared with €830 million in CY2024 and €828 million in CY2023. It has operations in Germany, Romania, the UK, the US, India and Mexico through its subsidiaries.
TCS said the acquisition will strengthen its presence in the German market and among European automotive and industrial customers. The company said MHP’s consulting and implementation capabilities will complement its global scale and engineering expertise.
K Krithivasan, CEO and managing director of TCS, said the partnership combines TCS’ capabilities in AI, engineering, technology and business transformation with MHP’s automotive consulting expertise.
“Together, we will industrialize AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future,” Krithivasan said.
Porsche commits €1.25 billion over five years
Alongside the acquisition, Porsche has signed a five-year strategic deal worth €1.25 billion with TCS and MHP. The partnership will focus on industrialising AI across Porsche’s engineering, manufacturing, operations, customer experience and enterprise transformation agenda.
As part of the partnership, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche. The centre will focus on converting AI use cases into scalable solutions across manufacturing and operations, engineering and customer experience.
Porsche CEO Dr Michael Leiters said the transfer of MHP to TCS would allow Porsche to focus on its core business while gaining TCS as a strategic technology partner.
“By combining Porsche’s automotive expertise with TCS’ digital technology and AI capabilities, we will further strengthen our innovative power, increase efficiency, and boost our competitiveness in an increasingly data and software-driven world of mobility,” Leiters said.
Deal requires regulatory approvals
The acquisition requires approvals under the EU merger control regulation and the EU Foreign Subsidies Regulation, along with foreign direct investment approval in Romania. TCS will also seek a certificate of non-objection from Germany’s Federal Ministry of Economy and Energy.
The transaction will give TCS full ownership of MHP while creating a long-term technology relationship with Porsche, positioning the Indian IT major to expand its automotive AI and software-defined mobility capabilities in Europe.
Shares of TCS ended 0.78% lower at ₹2,284.10 apiece on the NSE on Monday. The stock has tanked over 25% in the past year, underperforming the benchmark Nifty 50 index that has slipped close to 3% during the period.