TCS to Acquire Porsche IT Unit MHP for $373 Mn

Tata Consultancy Services (TCS) will acquire Germany-based management and IT consulting firm MHP from Porsche AG for an enterprise value of €320 million ($373 million), as the Indian IT major deepens its push into artificial intelligence and automotive technology.

TCS will acquire 100% of MHP through its Netherlands-based wholly owned subsidiary. 

The deal is part of a five-year strategic partnership between TCS and Porsche valued at €1.25 billion ($1.45 billion), under which the companies will work on AI transformation across the automaker’s engineering, manufacturing, operations, and customer experience functions.

TCS will also establish a dedicated AI Mobility Centre of Excellence for Porsche, focused on scaling AI applications across the automotive value chain.

“As AI, software, and data redefine the automotive industry, this partnership brings together TCS’ capabilities in AI, engineering, technology and business transformation with MHP’s strong automotive consulting expertise. Together, we will industrialise AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future,” K Krithivasan, CEO and Managing Director, TCS said in a statement.

MHP, a subsidiary of Porsche, has about 4,500 employees and reported turnover of €742 million ($865 million) in calendar 2025. The company provides consulting and technology services spanning digital transformation, artificial intelligence, SAP transformation, manufacturing digitalisation, connected mobility, and software-defined mobility.

The acquisition is expected to strengthen TCS's presence in Germany and expand its access to European automotive and industrial customers. MHP has operations in Germany, Romania, the UK, the US, India, and Mexico.

For Porsche, the transaction represents a move to focus more closely on its core automotive business while bringing TCS in 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,” said Michael Leiters, CEO, Porsche AG.

The deal comes as Indian IT services companies increasingly look to build deeper industry-specific capabilities in AI, rather than relying solely on traditional technology outsourcing contracts.

TCS said the partnership will focus on industrialising AI use cases across manufacturing and operations, engineering, and customer experience. The AI Mobility Centre of Excellence will work on turning AI applications into scalable solutions for Porsche.

The transaction will be funded through cash and is subject to regulatory approvals, including under EU merger-control and foreign-subsidy rules. TCS expects the acquisition to close within three to four months.