TCS acquires Porsche’s IT arm for €320M; bags €1.25B deal
The partnership between Porsche and TCS will see both companies jointly working on AI led solutions for automotive sector.
Tata Consultancy Services (TCS), India’s largest IT services company, will acquire MHP Management- und IT-Beratung GmbH (MHP), the IT services and consulting subsidiary of German automaker Porsche, for 320 million euros. TCS has also signed a five-year deal worth 1.25 billion euros with MHP.
In a notice to stock exchanges, TCS said MHP, which has more than 4,500 employees, specialises in business consulting, digital transformation, AI, SAP transformation, manufacturing digitalisation, and connected and software-defined mobility.
MHP has a presence in Germany, Romania, the UK, the US, India and Mexico.
TCS said the acquisition will also anchor a long-term AI transformation partnership with Porsche, forming part of a €1 billion deal. Under the partnership, TCS and Porsche will work to scale AI across the automaker’s engineering, manufacturing, operations, customer experience and enterprise transformation initiatives. The collaboration will also focus on next-generation automotive technology services and software-defined mobility platforms.
TCS CEO K Krithivasan said, “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.”
As part of the agreement, TCS will establish a dedicated AI Mobility Centre of Excellence (CoE) to focus on scaling AI use cases across key mobility technologies. The CoE will work to turn AI concepts into secure, scalable solutions aimed at improving development speed, operational resilience and competitiveness across Porsche’s products and value chain, TCS said.
Besides, TCS’ expertise will provide a foundation for scaling AI transformation and delivering business outcomes across Porsche’s organisation and broader mobility ecosystem.
Porsche AG CEO Michael Leiters said, “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.”