Tata Consultancy Services (TCS) announced the acquisition of 100% equity shares of MHP Management- und IT-Beratung GmbH (“MHP”) for an enterprise value of €320 million. This strategic move aims to anchor a long-term AI transformation partnership with Porsche AG, positioning TCS as a key technology partner in the automotive sector and enhancing its AI capabilities.
TCS Acquires Porsche’s IT Consulting Subsidiary
Tata Consultancy Services (TCS) has announced a significant strategic move, approving the acquisition of 100% of the equity shares of MHP Management- und IT-Beratung GmbH (“MHP”) for an enterprise value of €320 million. MHP is a leading automotive and industrial consulting firm and a subsidiary of Porsche AG.
Strategic Rationale and Partnership
This acquisition is a crucial part of a broader strategic partnership between TCS and Porsche AG. The primary objective is to drive AI transformation within the automotive sector, focusing on next-generation manufacturing technologies and software-defined mobility. The partnership is reinforced by a five-year strategic deal with Porsche, amounting to €1.25 billion, underscoring the depth of the collaboration. This move aims to industrialize AI across Porsche’s engineering, manufacturing, operations, and customer experience initiatives.
MHP’s Expertise and Market Position
MHP brings extensive expertise in business consulting, digital transformation, AI, SAP transformation, and manufacturing digitalization. As of CY2025, MHP reported a turnover of €742 million and employs approximately 4,500 professionals. The firm has a significant presence not only in Germany but also in Romania, the UK, USA, India, and Mexico through its subsidiaries, strengthening TCS’ foothold in the European automotive and industrial markets.
Acquisition Details and Approvals
The Share Purchase Agreement has been executed, and the completion of the acquisition is subject to regulatory approvals, including from the European Commission under the EU merger control regulation and the EU Foreign Subsidies Regulation. The deal is expected to be completed within 3-4 months. The acquisition is considered a cash transaction, with the enterprise value excluding customary post-closing adjustments for net debt and working capital.
Source: BSE
