TCS to Acquire Porsche's MHP for €320 Million, Secures €1.25 Billion Five-Year AI Deal

Tata Consultancy Services (TCS) has announced the acquisition of MHP Management- und IT-Beratung GmbH, a subsidiary of Porsche AG, for an enterprise value of €320 million (approximately $373 million). The acquisition, approved by the board of TCS Netherlands B.V. on August 24, 2026, is expected to close within three to four months, subject to regulatory clearances. The transaction values MHP at roughly 0.43 times its CY2025 turnover of €742 million, as reported by one outlet.

The acquisition is accompanied by a five-year strategic deal worth €1.25 billion, under which Porsche has committed to engaging TCS and MHP for services aimed at deploying artificial intelligence across its engineering, manufacturing, operations, and customer experience functions, as well as developing next-generation automotive technology and software-defined mobility platforms. The deal takes effect from the closing date of the acquisition. As part of the partnership, TCS will establish an AI Mobility Centre of Excellence for Porsche, which will focus on converting AI ideas into secure and scalable solutions.

The transaction marks a significant expansion for TCS in the European automotive sector. K. Krithivasan, CEO and Managing Director of TCS, 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 industrialize AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future."

Dr. Michael Leiters, CEO of Porsche AG, added: "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."

MHP, headquartered in Ludwigsburg, Germany, is a leading automotive and industrial consulting firm with over 300 clients and 4,500 employees. The company, which also has a presence in Romania, the UK, the USA, India, and Mexico, reported turnover of €828 million in CY2023 and €830 million in CY2024, according to one report.

The acquisition is subject to regulatory approvals, including from the European Commission under EU merger control regulations, the EU Foreign Subsidies Regulation, and Romanian foreign direct investment laws. An application for a certificate of non-objection will also be submitted to the Federal Ministry of Economy and Energy in Germany.

TCS informed the BSE and the National Stock Exchange about the strategic agreement under Regulation 30 of the SEBI listing regulations, with the disclosure signed by company secretary Yashaswin Sheth. The filing did not disclose the division of work or revenue between TCS and MHP, nor annual contract values or milestones.

Manufacturing contributed 8.7% to TCS revenue in Q1FY27 and 8.8% in FY26, as per one report.

In a separate development, TCS launched its TCS ADD AgentHub on August 17, 2026, a platform announced with efficiency metrics, though it is unrelated to the Porsche deal.