TCS to acquire Porsche’s IT company:100% stake deal worth ₹3,573 cr; AI Mobility Centre to be set up in India

Tata Consultancy Services (TCS) announced on 24 August the acquisition of ‘MHP Management-und IT-Beratung GmbH’, the IT consulting subsidiary of German carmaker Porsche. TCS is making this acquisition at an enterprise value of 320 million euros, or approximately 3,573 crore rupees. Through this deal, TCS will acquire 100% shares of this Porsche IT consulting company. The entire acquisition process is expected to be completed within the next three to four months. MHP’s expertise in automotive and digital transformation TCS’s third major deal in 10 months This strategic partnership between TCS and Porsche has been formed to advance AI transformation based on next-generation manufacturing technology and software-defined mobility. This is TCS’s third major deal within the last 10 months. Prior to this, in December, TCS acquired the Florida-based Salesforce consulting and AI solution firm ‘Coastal Cloud’ for $700 million. Apart from this, the company also acquired the digital marketing service provider ‘ListEngage Midco’ for $72.8 million. With the MHP deal, TCS has spent more than $1 billion on mergers and acquisitions (MA) in 10 months. Deal amidst pressure on IT sector in Europe This acquisition by MHP comes at a time when European IT and engineering businesses are facing immense pressure due to macroeconomic challenges. Before this, HCLTech acquired the ASAP Group in 2023 for approximately ₹2,300 crore, while recently, Persistent Systems acquired Nagarro for ₹11,820 crore. 5-year deal worth ₹13,958 crore with Porsche Immediately following this acquisition by MHP, Porsche also signed a major 5-year strategic deal worth 1.25 billion euros (approximately ₹13,958.75 crore) with MHP and TCS. TCS states that this deal will establish TCS as a strategic consulting and technology partner for Porsche and other European automotive and industrial clients. AI Mobility Center of Excellence to be built for Porsche Under the deal, TCS will establish a dedicated ‘AI Mobility Center of Excellence’ for Porsche. This center will work on developing new innovations in the fields of manufacturing, engineering, operations, and customer experience. Following this acquisition, TCS will gain access to MHP’s existing automotive consulting customers. Additionally, through MHP’s subsidiaries, TCS will expand into global markets such as Germany, Romania, the UK, the US, India, and Mexico. Founded on 13 May, 1996, MHP was previously a fully owned subsidiary of Porsche AG. What is MHP and Software-Defined Mobility?