TCS to acquire Porsche IT unit MHP in €320m deal, pairing it with a €1.25bn AI partnership
Tata Consultancy Services plans to buy Porsche’s IT consulting subsidiary MHP for an enterprise value of €320 million. The transaction includes a five-year, €1.25 billion strategic agreement to build AI-led mobility capabilities, including an AI Mobility Centre of Excellence for Porsche.
What happened
Tata Consultancy Services · TCS will acquire Porsche’s IT consulting subsidiary MHP for €320 million and enter a five-year €1.25 billion AI mobility
Key facts
- €320 million enterprise value
- €1.25 billion five-year strategic agreement
- 4,500 MHP employees
- €742 million MHP 2025 turnover
- €828 million MHP 2023 turnover
- €830 million MHP 2024 turnover
- three to four months expected closing
Why this matters
The deal illustrates how buyers can pair a targeted capability acquisition with a long-term commercial mandate to secure talent, customer intimacy, and post-close revenue certainty.
What to watch
- Regulatory and competition approval timeline for the MHP acquisition.
- Disclosure of MHP revenue, client concentration, employee retention terms, and post-close operating structure.
- Named first projects and measurable milestones from the Porsche AI Mobility Centre of Excellence.
- Porsche dealer-network adoption of AI tools, particularly in sales allocation, configurator journeys, service scheduling, and customer relationship management.
- New TCS automotive wins that cite MHP or Porsche AI capabilities as a reference.
- Evidence of data-sovereignty investments or partnerships in Germany and the EU.
- Changes in Porsche's direct-sales, agency-model, and dealer technology strategy.
- Establish the AI Mobility Centre of Excellence with initial Porsche use cases in vehicle configuration, sales forecasting, dealer operations, and predictive aftersales.
- Retain key MHP automotive consultants and protect client relationships through continuity commitments and localized European delivery leadership.
- Package MHP's Porsche-developed capabilities into reusable offerings for luxury OEMs, dealer networks, fleet operators, and automotive-finance retailers.
- Prioritize compliant European data, cybersecurity, and AI-governance infrastructure to support customer and vehicle-data applications.
- Use the five-year agreement to expand from IT transformation into revenue-linked retail KPIs such as conversion, order-to-delivery time, service retention, and inventory turns.