Tata Consultancy Services Acquires Porsche's IT Consulting Subsidiary to Drive AI Transformation

Tata Consultancy Services Acquires Porsche's IT Consulting Subsidiary to Drive AI Transformation​

Tata Consultancy Services (TCS) has entered into a major strategic partnership with Porsche AG, announcing the acquisition of Porsche's IT consulting subsidiary, MHP Management- und IT-Beratung GmbH. This acquisition aims to accelerate AI transformation across the mobility value chain and bolster TCS’ position as a strategic partner in the European automotive and industrial sectors.

TCS, through its subsidiary, has approved the acquisition of 100% of equity shares in MHP. The deal involves an enterprise value of €320 million, with the consideration structure involving cash.

MHP is a leading automotive and industrial consulting firm, specializing in areas including business consulting, digital transformation, AI, software-defined mobility, and manufacturing digitalization. The acquisition solidifies the strategic alliance between TCS and Porsche, who have signed a five-year strategic deal amounting to €1.25 billion.

This collaboration is set to establish a dedicated AI Mobility Centre of Excellence for Porsche. TCS will leverage its capabilities in AI, technology, and business transformation, while MHP provides deep experience in automotive and industrial consulting.

Dr. Michael Leiters, CEO of Porsche AG, stated that the transfer of MHP to TCS is an important step in Porsche’s strategy to focus on its core business. He added that combining Porsche’s automotive expertise with TCS’s digital technology and AI capabilities will strengthen both companies' innovative power.

The partnership is structured around three core pillars: TCS scaling AI execution for Porsche, creating a long-term value platform through the five-year business deal, and TCS acquiring MHP to strengthen its presence in the German and European automotive market.

MHP and TCS Partnership Details​

The target entity, MHP, operates within the business consulting, digital transformation, and automotive and industrial technology services sector. The acquisition is expected to be completed within 3 to 4 months.

The operational details and profile of the target entity are provided in the table below:


This partnership is designed to enable the industrialization of AI across Porsche's entire operation, covering engineering, manufacturing, operations, customer experience, and enterprise transformation.

TCS Stock Price Movement​

Tata Consultancy Services Limited shares slipped by 0.78% to close at ₹2284.1 after falling ₹17.90 in trading today. The stock saw a daily volume of 1.54 million shares during the session.