In one of the largest European tech acquisitions by an Indian IT services leader, Tata Consultancy Services (TCS) announced the 100% acquisition of MHP Management- und IT-Beratung GmbH, the management and IT consulting subsidiary of iconic luxury sports car manufacturer Porsche AG. The enterprise valuation of the deal stands at €320 million (approximately $373 million or ₹3,574 crore).

The transaction is executed via TCS’s wholly-owned subsidiary, Tata Consultancy Services Netherlands B.V., and is anchored by a massive five-year strategic partnership agreement between Porsche and TCS valued at €1.25 billion. The acquisition is expected to formally close within three to four months, subject to standard regulatory and anti-trust approvals in Europe.

Key Financials & Operational Scope of the Deal

The acquisition provides TCS with immediate access to high-end European automotive consulting talent while integrating MHP’s deep domain expertise into TCS’s scale.

Financial & Talent Metrics:

• Acquisition Enterprise Value: €320 million ($373 million) for a 100% equity stake in MHP.
• Long-Term Anchor Contract: A €1.25 billion, 5-year strategic commitment from Porsche AG.
• MHP Financial Footprint: MHP generated a turnover of €742 million in Calendar Year 2025 across more than 300 global enterprise clients.
• Talent Integration: Approximately 4,500 domain experts and consultants from MHP across Germany, Romania, the UK, the US, India, and Mexico will transition into TCS.
• Brand Continuity: MHP will retain its independent brand identity and continue operating under its existing name within the TCS family.

Establishing the ‘AI Mobility Centre of Excellence’

A key centerpiece of the deal is TCS’s commitment to establish a dedicated AI Mobility Centre of Excellence (CoE) specifically tailored for Porsche AG.

Focus Areas of the Partnership:

1. Industrializing AI at Scale: Implementing artificial intelligence systems across Porsche’s engineering design, shop-floor manufacturing, enterprise operations, and post-sales customer experiences.
2. Software-Defined Vehicles (SDVs): Co-innovating next-generation software platforms for connected cars, high-performance battery systems, and automated driving architecture.
3. Digital Shop Floors & SAP Transformation: Modernizing Porsche’s supply chain logistics, SAP platforms, and plant manufacturing digitization processes.

“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.” — K. Krithivasan, CEO & Managing Director, TCS.

Porsche’s Core Strategy: Strategic Realignment

For Porsche AG, selling its IT consultancy arm represents a deliberate step under its internal corporate strategy (“Sportwagenschmiede 35”) to refocus capital and operational energy purely on sports car manufacturing and core automotive engineering.

“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.” — Dr. Michael Leiters, CEO, Porsche AG.

Strategic Impact for TCS in Europe

The acquisition significantly elevates TCS’s market positioning across Europe—particularly in Germany’s manufacturing hub. Historically, the manufacturing and automotive sector contributed around 8.7% to 8.8% of TCS’s total revenue. Growth in this sector had slowed due to macroeconomic headwinds in Europe, but securing Porsche as a anchor client and adding MHP’s consulting strength positions TCS as a prime digital engineering partner for global original equipment manufacturers (OEMs).