Tata Consultancy Services (TCS) has announced its intent to acquire MHP Management- und IT-Beratung GmbH (MHP), Porsche AG’s IT consulting subsidiary, for an enterprise value of €320 million. This significant move is coupled with a comprehensive five-year strategic partnership between TCS and the German luxury automaker, valued at €1.25 billion.
The acquisition, greenlit by TCS Netherlands B.V., a wholly-owned subsidiary of TCS, is poised to bolster the Indian IT services giant's footprint in Germany and deepen its engagements with clients across the European automotive and industrial sectors. The transaction is anticipated to conclude within the next three to four months, pending regulatory approvals.
Strategic Partnership Focuses on AI Innovation
Beyond the acquisition, the €1.25 billion strategic deal underscores a joint commitment to leveraging artificial intelligence. TCS and Porsche will collaborate extensively on AI initiatives spanning Porsche’s critical functions, including engineering, manufacturing, operations, customer experience, and broader enterprise transformation activities.
A core component of this partnership will be the establishment of a dedicated AI Mobility Centre of Excellence by TCS specifically for Porsche. This center will concentrate on industrializing AI use cases across the value chain, aiming to develop secure and scalable solutions for Porsche's product development and operational processes. MHP, headquartered in Ludwigsburg, Germany, brings specialized expertise in automotive and industrial consulting, digital transformation, and software-defined mobility solutions, employing approximately 4,500 professionals and reporting a turnover of €742 million in 2025.
Leadership Perspectives on the Alliance
K. Krithivasan, CEO and Managing Director of Tata Consultancy Services, highlighted the synergy of the deal. “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,” Krithivasan stated. He added that together, they aim to industrialize AI at scale for Porsche, driving innovation for future intelligent, software-defined mobility experiences.
Michael Leiters, CEO of Porsche AG, echoed this sentiment, emphasizing the strategic importance of the collaboration. “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 commented. He noted that the transfer of MHP to TCS marks another crucial step in Porsche’s strategy to sharpen its focus on core business operations.
MHP currently operates across several countries, including Germany, Romania, the UK, the US, India, and Mexico, further extending the global reach and capabilities that TCS will now integrate into its offerings.