Tata Consultancy Services (TCS) will acquire 100% of MHP Management- und IT-Beratung GmbH (MHP), Porsche AG’s management and IT consulting subsidiary, for an enterprise value of €320 million (approx.. Rs 3,570 crore or $370 million), as the IT services company looks to deepen its presence in automotive consulting and accelerate its AI transformation push.
This is the third acquisition announced by TCS since October 2025. It acquired ListEngage in October last year, and Coastal Cloud in December. Both acquisitions were focussed on enhancing Salesforce capabilities including AI advisory and business consulting.
According to a recent report by Crisil, mergers and acquisitions in the IT sector have been fuelled by the need to expand AI capabilities across verticals. Half of the M&As in the space over the past two fiscals have been led by AI capability expansion through the inorganic route, the ratings agency said.
“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,” K. Krithivasan, CEO and managing director, TCS, said.
The acquisition, approved by the board of TCS Netherlands B.V., a wholly owned subsidiary of TCS, is part of a strategic partnership between TCS and Porsche focused on AI transformation, next-generation manufacturing technologies and software-defined mobility. The transaction remains subject to regulatory approvals and is expected to be completed within three to four months.
“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,” Michael Leiters, CEO, Porsche AG, said.
MHP is a European automotive and industrial consulting firm with expertise spanning business consulting, digital transformation, AI, SAP transformation, manufacturing digitalisation, connected mobility and software-defined mobility. The company had a turnover of €742 million in calendar year 2025 and around 4,500 employees.
It has a presence in Germany, Romania, the UK, the US, India and Mexico through its subsidiaries. For TCS, the acquisition is intended to anchor a long-term AI transformation partnership with Porsche and strengthen its position in the German market and among European automotive and industrial customers.
MHP’s automotive consulting and AI transformation capabilities are expected to complement TCS’ global scale, engineering and technology capabilities. As part of the partnership, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche, focusing on manufacturing, engineering, operations and customer experience. The centre will work on industrialising AI use cases and embedding AI across Porsche’s product and value chain.
Porsche has also signed a five-year strategic deal with MHP and TCS worth €1.25 billion. The net new deal is intended to provide a platform for long-term value creation and enable TCS and Porsche to scale AI transformation and deliver business outcomes across Porsche’s organisation and mobility ecosystem, the IT major said.
“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,” Krithivasan said.
“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,” Leiters added.