Tata Consultancy Services (TCS), through its wholly owned subsidiary Tata Consultancy Services Netherlands B.V., has approved the acquisition of 100% equity shares of MHP Management- und IT-Beratung GmbH (MHP), a subsidiary of Porsche AG, for an enterprise value of €320 million.
The acquisition, which is expected to be completed within three to four months, will anchor a long-term AI transformation partnership between TCS and Porsche, strengthening TCS’ position as a strategic consulting and technology partner for the European automotive and industrial sectors.
Partnership anchors AI transformation
MHP is an automotive and industrial consulting firm with expertise spanning business consulting, digital transformation, artificial intelligence, software-defined mobility, SAP and manufacturing digitalisation.
The acquisition forms part of a strategic partnership between TCS and Porsche focused on driving AI transformation through next-generation manufacturing technologies and software-defined mobility.
€1.25-billion strategic deal
To enable the partnership, Porsche has signed a five-year strategic deal with MHP and TCS worth €1.25 billion.
The partnership with Porsche, one of the world’s successful sports car manufacturers, will provide a marquee anchor for TCS’ AI transformation agenda and enable the company to serve Porsche and broader European automotive and industrial customers.
AI across automotive value chain
“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,” TCS, CEO & MD, K. Krithivasan.
Together, we will industrialize AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future,” he said.
The collaboration will industrialise AI across Porsche’s engineering, manufacturing, operations, customer experience and enterprise transformation agenda, while supporting the development of next-generation automotive technology services and software-defined mobility platforms.
Porsche focuses on core business
“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, said Porsche AG, CEO, Michael Leiters.
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,” he said.
As part of the agreement, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche to drive innovation across manufacturing, engineering, operations and customer experience.
Three-pillar collaboration
The collaboration will be structured around three core pillars — TCS scaling AI execution and driving outcomes for Porsche, creating a platform for long-term value creation, and TCS acquiring MHP through its Netherlands subsidiary.
The acquisition does not fall within the ambit of related party transactions, and the promoter, promoter group and group companies do not have any interest in the entity being acquired.