TCS to buy Porsche IT unit for $373 million

# TCS to Acquire Porsche Consulting Arm MHP in $373 Million Deal

India’s Tata Consultancy Services (TCS) has agreed to acquire MHP, the management and IT consulting subsidiary of German luxury automaker Porsche AG, for an enterprise value of €320 million, or approximately $373 million. The deal is expected to strengthen TCS’s position in automotive software, artificial intelligence and digital transformation as carmakers increasingly depend on technology-driven mobility solutions.

The acquisition is part of a larger five-year strategic partnership between TCS, MHP and Porsche. Under the agreement, Porsche has committed €1.25 billion, equivalent to about $1.46 billion, toward technology and consulting services from TCS and MHP.

The partnership will focus heavily on artificial intelligence, with plans to introduce AI-powered solutions across Porsche’s engineering, manufacturing, operations and customer experience functions. The companies will also work on next-generation automotive technologies and software-defined mobility platforms.

MHP, which is headquartered in Germany, specializes in automotive and industrial consulting, business transformation, artificial intelligence, SAP solutions, manufacturing digitalization and connected mobility. TCS plans to acquire the entire company through its Netherlands-based subsidiary, subject to regulatory and antitrust approvals.

The transaction is expected to close within three to four months once the necessary approvals are secured. Following the acquisition, MHP will continue operating under its existing brand as a distinct consulting company within the TCS group.

As part of the strategic partnership, TCS will also establish an AI Mobility Centre of Excellence for Porsche. The center is expected to support AI-driven innovation throughout Porsche’s operations while helping develop new software-based mobility technologies.

For TCS, the acquisition provides access to MHP’s specialized automotive expertise and strengthens its global engineering and technology capabilities. The move comes as the Indian IT services industry faces changing customer spending patterns, with businesses increasingly shifting investments from traditional technology services toward artificial intelligence and automation.

The acquisition also fits into Porsche’s strategy of focusing more closely on its core sports-car business. The German automaker is facing pressure from Chinese competitors, tariffs, changing electric-vehicle economics and the high cost of developing new technologies.

Porsche said the sale of MHP forms part of its broader “Sportwagenschmiede 35” strategy, which aims to sharpen the company's focus on its core automotive operations. Porsche has also been restructuring parts of its business portfolio, including changes involving its investments and subsidiaries.

Despite the ownership change, Porsche and MHP are expected to maintain their existing business relationship. MHP’s continued presence within TCS will allow the consulting firm to retain its automotive specialization while gaining access to TCS’s global technology resources.

The deal comes at a time when automakers are rapidly adopting software-defined vehicles, connected technologies and AI-powered manufacturing systems. As vehicles become increasingly dependent on digital platforms, TCS believes MHP’s automotive expertise could help it capture a larger share of the growing market.

For Porsche, the transaction provides an opportunity to streamline its business while maintaining access to specialized technology and consulting capabilities. For TCS, the acquisition represents another step toward expanding beyond traditional IT services and becoming a larger player in AI-powered automotive transformation.