TCS to Acquire Porsche’s MHP at €320 Million Enterprise Value, Signs €1.25 Billion Five-Year Deal

Tata Consultancy Services will acquire Porsche’s management and technology consultancy MHP in a cash transaction valued at an enterprise value of €320 million, while entering a separate five-year strategic agreement designed to expand the use of artificial intelligence across the German carmaker’s operations.

MUMBAI, August 24, 2026: Tata Consultancy Services has agreed to acquire 100% of MHP Management- und IT-Beratung GmbH, the Germany-based management and IT consulting subsidiary of Porsche AG, as part of a broader strategic partnership between the two companies.

The proposed acquisition assigns MHP an enterprise value of €320 million, equivalent to approximately $373 million at the exchange rate cited when the deal was announced. The figure is an enterprise valuation and should not be treated as the final purchase consideration. TCS said the value excludes customary post-closing adjustments for MHP’s net debt and working capital.

The acquisition will be made for cash through a TCS subsidiary. It is distinct from the five-year strategic agreement that Porsche has signed with MHP and TCS, which is valued at €1.25 billion. That agreement covers technology and transformation work to be carried out for Porsche over the five-year period and is not part of the €320 million enterprise value assigned to MHP.

The transaction is expected to be completed within three to four months, subject to regulatory approvals and other customary closing conditions, according to a TCS regulatory disclosure filed with the National Stock Exchange of India.

Deal Requires European Regulatory Approvals

TCS identified several approvals required before the acquisition can close. These include clearance from the European Commission under the European Union’s merger-control rules and approval under the EU Foreign Subsidies Regulation.

The transaction will also require review by Romania’s Commission for the Examination of Foreign Direct Investments under applicable Romanian foreign-investment law. An application for a certificate of non-objection will be submitted to Germany’s Federal Ministry for Economic Affairs and Energy.

Porsche separately said that the acquisition remained subject to regulatory and competition clearances and was expected to close in the coming months.

MHP Brings 4,500 Employees and Automotive Consulting Expertise

Headquartered in Ludwigsburg, near Stuttgart, MHP has operated for more than 30 years and specialises in management consulting and technology-led industrial transformation. Porsche currently owns the business outright.

MHP employs approximately 4,500 people worldwide and has operations in Germany, Romania, the United Kingdom, the United States, India and Mexico. Business reporting at the time of the announcement said the consultancy worked with more than 300 clients, primarily in the automotive and manufacturing industries, as well as aerospace, defence, energy and the public sector.

The company advises clients on business strategy, digital transformation, artificial intelligence, SAP transformation, manufacturing digitalisation, supply-chain management, cybersecurity, platforms and connected mobility. Its capabilities also extend to software-defined manufacturing and software-defined mobility, areas that are becoming increasingly important as vehicles and industrial operations rely more heavily on software, data and cloud-based systems.

According to TCS’s exchange filing, MHP reported turnover of €742 million in calendar year 2025, down from €830 million in 2024 and €828 million in 2023. TCS did not disclose MHP’s profit or other earnings figures.

TCS Plans AI Mobility Centre of Excellence for Porsche

Under the wider partnership, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche. The centre will focus on converting artificial-intelligence concepts into secure, scalable systems that can be deployed across the carmaker’s product and operational value chain.

TCS and Porsche plan to apply AI across manufacturing and production operations, vehicle engineering, internal processes and customer experience. The companies also intend to work on next-generation automotive technology services and software-defined mobility platforms.

The partnership combines Porsche’s automotive engineering and industry knowledge with TCS’s capabilities in AI, product engineering, technology services and business transformation.

The five-year agreement provides the commercial foundation for that work. TCS’s filing describes it as a strategic deal between Porsche, MHP and TCS amounting to €1.25 billion. The companies have not provided an annual breakdown of the contract or disclosed how the work will be allocated between TCS and MHP.

Why MHP Matters to TCS

MHP gives TCS an established automotive and industrial consulting business in Germany, Europe’s largest economy and one of the world’s most important vehicle-manufacturing markets.

The acquisition adds specialised consultants with experience in automotive strategy, industrial operations, SAP systems and manufacturing technology. It also strengthens TCS’s ability to combine consulting, engineering and AI implementation for European automotive and industrial clients.

TCS said MHP’s experience in complex automotive transformation programmes would complement its international scale and engineering capabilities. The company expects the acquisition to strengthen its position in Germany and expand its reach among European automotive and industrial customers.

The Porsche relationship also provides TCS with a major long-term client for its AI and mobility services. However, TCS has not issued a forecast for the acquisition’s effect on group revenue, margins or profit.

Porsche Focuses on its Core Automotive Business

For Porsche, the sale forms part of its “Sportwagenschmiede 35” strategy, which is intended to sharpen the company’s focus on its core automotive business.

Porsche said transferring MHP to TCS would allow the consulting company to gain broader development and innovation opportunities as part of a global technology-services group. At the same time, Porsche will retain access to MHP’s consulting and technology capabilities through the strategic partnership.

The carmaker expects MHP to remain an important partner for the digitalisation and transformation of its business, particularly in artificial intelligence. Porsche and MHP’s longstanding working relationship will therefore continue after the change in ownership.

MHP Will Retain its Brand and Operating Identity

MHP is expected to be acquired as a complete corporate group rather than being immediately absorbed into TCS’s existing operations.

Porsche said MHP would retain its name, brand and position as an independently operating consulting firm within TCS. Its existing industry focus and client work are also expected to continue.

The structure gives TCS an established European consulting brand while providing MHP with access to TCS’s global delivery network, technology capabilities and international client base.

If the required approvals are secured, the acquisition will deepen TCS’s presence in automotive consulting, manufacturing technology and AI-led transformation while establishing a long-term strategic relationship with Porsche. The official TCS announcement and Porsche’s disclosure confirm that MHP will continue operating under its existing brand after the transaction closes.