India’s Tata Consultancy Services (TCS) has agreed to acquire MHP, Porsche AG’s management and IT consulting subsidiary, for an enterprise value of €320 million, or about $373 million, in a deal that expands the Indian technology giant’s presence in automotive software and artificial intelligence
The acquisition is part of a broader five-year strategic partnership under which Porsche has committed €1.25 billion ($1.46 billion,) to TCS and MHP for technology and consulting services.
The partnership will focus on deploying artificial intelligence across Porsche’s engineering, manufacturing, operations and customer experience functions. It will also cover next-generation automotive technology and software-defined mobility platforms.
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MHP specializes in automotive and industrial consulting, business transformation, AI, SAP, manufacturing digitalization and connected mobility. TCS said it will acquire 100% of the Germany-based company through its subsidiary, TCS Netherlands. The transaction remains subject to regulatory and antitrust approvals and is expected to close within three to four months.
As part of the agreement, TCS will establish an AI Mobility Centre of Excellence for Porsche. The center is expected to support AI-led innovation across the automaker’s operations and help develop software-driven mobility technologies.
For TCS, the acquisition provides access to MHP’s specialized automotive consulting capabilities while adding to its global engineering and technology portfolio. The move comes as India’s $315 billion IT services industry faces pressure from clients reducing or delaying traditional technology spending amid the rapid adoption of AI.
The deal also reflects Porsche’s effort to concentrate on its core business as the German automaker faces pressure from Chinese competitors, tariffs and the high costs associated with electric vehicles.
Porsche said the sale of MHP is part of its broader “Sportwagenschmiede 35” strategy, under which it is sharpening its focus on its core sports-car business. The company has also been restructuring its portfolio, including the sale of stakes in Bugatti and Rimac and the closure of several subsidiaries earlier this year.
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MHP will continue operating as a distinct brand and independent consulting firm within TCS following the transaction, according to the companies. Porsche and MHP are also expected to continue their existing business relationship.
The acquisition gives TCS a stronger foothold in the automotive technology market at a time when automakers are increasingly relying on software, connected vehicles and AI to transform manufacturing and customer services.
An analyst cited by Reuters said the deal should add to TCS revenue, while its overall impact on the company’s stock and capabilities was expected to be broadly neutral.