TCS To Acquire Porsche's IT Arm MHP for €320mn

Synopsis

Tata Consultancy Services will acquire 100% of MHP, the German subsidiary of Porsche AG involved in management and IT consulting, for €320 million, and also enter into a separate 5-year strategic partnership with Porsche, to support the company's engineering and manufacturing, with a valuation of €1.25 billion. The double transaction is the biggest carve-out acquisition for TCS since 2008 and helps the Indian IT major's presence in the automotive consulting market in Europe, while Porsche concentrates on its core car-making business.

A Two-Part Deal

On August 24, 2026, Tata Consultancy Services (TCS) announced its intention to acquire Porsche AG's "consulting subsidiary" in conjunction with a long-term services contract. Indian IT services giant has agreed to buy MHP Management- und IT-Beratung GmbH, a subsidiary of Porsche AG, for €320 million which is equivalent to $373 million.

It is expected to close within 3-4 months once approved by the board of TCS Netherlands B.V., a wholly owned subsidiary of TCS.

A separate, bigger commercial deal is going along with the acquisition. Porsche and TCS agree a strategic partnership that involves the two parties jointly developing and applying artificial intelligence within Porsche's engineering, manufacturing, operations, customer experience and enterprise transformation efforts and TCS setting up a dedicated AI Mobility Centre of Excellence for Porsche, in a deal valued at €1.25 billion, over 5 years.

What MHP Brings

The acquired company has a proven track record in automotive consulting in Europe. MHP has a strong presence in automotive and industrial consulting in Europe, with expertise spanning business consulting, digital transformation, AI, SAP transformation, manufacturing digitalisation and connected, software-defined mobility, works with over 300 clients, and had a turnover of €742 million in CY2025.

The company has 4,500 employees, mostly in Germany and Romania, who will become part of TCS.

The unit's recent trajectory is being noted by analysts, in addition to the strategic consideration of the deal. While MHP's revenues have been affected by the automotive slowdown and competition from other sectors for a couple of years, analysts believe that the purchase spells good news for TCS.

The deal is significant in the history of TCS. The carve-out is the first of its kind since 2008, when TCS bought Citigroup Global Services for $505 million and a nine-and-a-half-year, $2.2 billion services contract with Citigroup.

Why Porsche Is Selling

It's in line with a wider trend in the auto industry of cutting non-core businesses as a result of thin profit margins. The divestment of Germany's carmaker's consulting and IT services business was still at a very early stage in June 2025 when it was reported, with the completed transaction putting an end to that strategic review.

Corporate Reactions

Both chief executives saw the agreement as complementary, not transactional. “Porsche is taking another significant step in its strategy to firmly concentrate on the core business with the transfer of MHP to TCS,” said Porsche AG CEO Michael Leiters, and “the synergies between Porsche's automotive expertise and TCS's digital and AI expertise would make the Porsche company even more innovative, efficient and competitive in a data-driven mobility world.” The AI aspect of the tie-up was highlighted by TCS's leadership.

The companies will "industrialize AI at scale for Porsche" and "TCS' capabilities in AI, engineering, technology and business transformations, combined with MHP's proven automotive consulting capabilities, will revolutionize the way the industry leverages artificial intelligence," said TCS CEO and Managing Director K.

Structural Details

The integration of the acquired company will be a gradual process. As part of the transaction, MHP will continue to be a separate brand and operate as an independent consulting firm within TCS (subject to the transaction's completion). Deutsche Bank AG acted as financial advisor and Noerr as legal counsel to TCS on the transaction.