TCS to Acquire Porsche's IT Consulting Arm MHP for €320 Million
Tata Consultancy Services (TCS) has announced the acquisition of a 100 per cent stake in MHP Management- und IT-Beratung GmbH (MHP), a subsidiary of German sports car maker Porsche AG, for an enterprise value of 320 million euros (approximately Rs 3,574 crore). The deal, disclosed in a regulatory filing on Monday, will be executed through TCS's wholly owned subsidiary, Tata Consultancy Services Netherlands BV.
The acquisition is part of a broader five-year strategic partnership valued at 1.25 billion euros between TCS and Porsche. Under the collaboration, TCS will establish a dedicated 'AI Mobility Centre of Excellence' for Porsche, focusing on industrialising artificial intelligence use cases across the automaker's manufacturing, engineering, operations, and customer experience segments.
In the regulatory filing, TCS said: "The Board of Directors of Tata Consultancy Services Netherlands BV, a wholly owned subsidiary of the Company, at its meeting held today, considered and approved the acquisition of 100 per cent of equity shares of MHP Management- und IT-Beratung GmbH ('MHP'), subsidiary of Porsche AG ('Porsche'), for an enterprise value of 320 million euros." The transaction is expected to be completed within the next three to four months, subject to regulatory approvals from the European Commission and authorities in Germany and Romania.
Commenting on the deal, TCS CEO and Managing Director K Krithivasan said: "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."
Porsche AG CEO Michael Leiters added: "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."
MHP, headquartered in Ludwigsburg, Germany, is a management and IT consultancy serving the automotive and manufacturing, aerospace, defence, energy, and public sector industries. The company employs approximately 4,500 people and reported a turnover of 742 million euros for the 2025 calendar year.
The acquisition marks a strategic move by TCS to deepen its presence in the automotive consulting and AI space. MHP's expertise in management consulting and IT services is expected to complement TCS's global technology capabilities, particularly in the context of the ongoing transformation toward software-defined vehicles and connected mobility solutions. The deal also strengthens TCS's footprint in Germany, Europe's largest economy, and aligns with its broader strategy of investing in high-growth industrial sectors.
Analysts view the partnership as a significant step for both companies, allowing Porsche to leverage TCS's scale in AI and software engineering while providing TCS with a strong foothold in the premium automotive ecosystem. The establishment of the AI Mobility Centre of Excellence is likely to accelerate innovation in areas such as autonomous driving, predictive maintenance, and intelligent manufacturing processes.
Pending regulatory clearances, the transaction is expected to close in the first half of the next fiscal year. The acquisition is subject to customary closing conditions, including approvals from competition authorities in multiple jurisdictions. Both companies have expressed confidence in completing the deal within the stated timeline.
