The deal will give TCS control of MHP, a Germany-based consulting company with around 4,500 employees and €742 million in turnover in calendar year 2025. TCS said the acquisition is expected to close within three to four months, subject to regulatory approvals.
Alongside the acquisition, TCS will set up an AI Mobility Centre of Excellence for Porsche. The centre will work on AI applications across the carmaker’s manufacturing, engineering, operations and customer experience functions.
For TCS, the transaction brings an established automotive consulting business into its portfolio while deepening its relationship with Porsche. For Porsche, the sale of MHP comes with a five-year technology partnership with TCS.
From Porsche subsidiary to TCS-owned business
MHP, headquartered in Ludwigsburg, Germany, has been part of Porsche since 1998 and operates across Germany, Romania, the UK, the US, India and Mexico. Its services cover business consulting, AI, SAP transformation, manufacturing digitalisation and connected and software-defined mobility.
MHP reported turnover of €828 million in 2023 and €830 million in 2024 before falling to €742 million in 2025.
Commenting on the partnership, TCS CEO and managing director K Krithivasan said the deal combines the companies’ capabilities as the automotive industry becomes more dependent on software and data.
“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.”
He added that TCS and MHP would work to expand AI applications across Porsche’s operations.
The acquisition will be made in cash through TCS Netherlands B.V., a wholly owned subsidiary of TCS. The €320 million enterprise value excludes customary adjustments for net debt and working capital.
Also read: Closing Bell on August 24: Why Sensex, Nifty ended lower despite early gains
Porsche shifts gears on technology
The acquisition is tied to a broader five-year strategic agreement under which Porsche has committed €1.25 billion to TCS and MHP.
The two companies plan to use the partnership to develop and deploy AI across Porsche’s engineering, manufacturing, operations and customer-facing functions. TCS will run the dedicated AI Mobility Centre of Excellence as part of the arrangement.
Speaking on the transaction, Porsche CEO Michael Leiters said the transfer of MHP would allow the carmaker to focus on its core business while bringing TCS into a broader technology role.
“Porsche is taking another important step in its strategy to focus resolutely on its core business with the transfer of MHP to Tata Consultancy Services.”
Leiters said the partnership would combine Porsche’s automotive expertise with TCS’ technology and AI capabilities.
TCS said the acquisition would also expand its presence in Germany and among European automotive and industrial companies. The transaction remains subject to approvals, with completion expected in three to four months.
Shares of TCS were trading at ₹2,281, down 0.91% on the day.
