Tata Consultancy Services (TCS) has agreed to acquire MHP Management- und IT-Beratung, a management and IT consulting subsidiary of Porsche, for an enterprise value of €320m ($373m).
The deal forms part of a new five-year strategic partnership between the Indian IT services firm and the German car manufacturer focused on integrating AI into various aspects of Porsche’s business.
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The acquisition, which remains subject to regulatory and competition law approvals, was approved by the board of Tata Consultancy Services Netherlands, a wholly owned subsidiary of TCS, at a recent meeting.
Under the terms of the agreement, TCS will acquire 100% of the equity shares of MHP.
The transaction is expected to close in the coming months and MHP will keep its brand and operate independently under its existing name.
As part of the broader partnership, TCS will establish an AI Mobility Centre of Excellence dedicated to Porsche.
The centre aims to foster technology development in manufacturing, operations, engineering, and customer experience, supporting Porsche’s goal of digital transformation and application of AI across its value chain.
MHP, which is headquartered in Ludwigsburg near Stuttgart and employs over 4,500 people globally, specialises in business transformation, SAP, AI, digitalisation, and connected mobility.
The firm serves clients across a range of industries including automotive, energy, aerospace, and the public sector, and has a longstanding relationship with Porsche.
TCS CEO and managing director K Krithivasan said: “TCS is pleased to partner Porsche in its transformation journey. 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.”
According to Porsche, the agreement marks a further step in its “Sportwagenschmiede 35” strategy, which aims to sharpen its focus on core business activities.
Porsche CEO Michael Leiters said: “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. At the same time, we are gaining a strategic partner in TCS.
“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.”
Following completion of the transaction, TCS and Porsche intend to deepen collaboration in the development and scaling of digital and AI applications. MHP is expected to play a continued role as a partner in Porsche’s digitalisation and transformation projects.
Deutsche Bank acted as financial adviser to TCS and Noerr served as legal counsel.
In July, TCS opened the TCS Autonomous Engineering Lab Powered by Nvidia at its Global Axis campus in Bengaluru, India. The facility is intended to support the development and implementation of AI solutions for the mobility and manufacturing industries.
