TCS will acquire Porsche subsidiary MHP for €320 million, expected to close in three to four months.
Porsche has separately signed a five-year, €1.25 billion strategic deal with TCS and MHP.
This is TCS' third acquisition in under a year, taking its total M&A spend past $1 billion in ten months.
Tata Consultancy Services (TCS) on August 24 announced that it will acquire MHP Management- und IT-Beratung GmbH, a subsidiary of German automaker Porsche, for an enterprise value of €320 million, or around ₹3,573.44 crore. TCS will acquire 100% of the company's shares, and the deal is expected to close within the next three to four months.
MHP is an automotive and industrial consulting firm with expertise in business consulting, digital transformation, artificial intelligence, software-defined mobility, SAP and manufacturing digitalisation. As of CY2025, the company reported a turnover of about €742 million and employs 4,500 people. Over the past three years, its annual turnover stood at around €828 million in CY23 and €830 million in CY24, before dipping to €742 million in CY25.
1 August 2026
Get the latest issue of Outlook Business
The acquisition forms part of a strategic partnership between TCS and Porsche aimed at driving AI transformation, anchored in next-generation manufacturing technologies and software-defined mobility. Alongside the acquisition, Porsche has signed a separate five-year strategic deal with MHP and TCS worth €1.25 billion, or ₹13,958.75 crore.
Advertisement
As part of the arrangement, TCS will set up a dedicated AI Mobility Centre of Excellence for Porsche to build innovation across manufacturing, engineering, operations and customer experience.
TCS' Third Major Acquisition In Under A Year
This marks TCS' third significant acquisition in less than a year. In December, the company had acquired Florida-based Salesforce consulting and AI solutions firm Coastal Cloud for $700 million, following its earlier $72.8 million acquisition of digital marketing services provider ListEngage MidCo. With the MHP deal, TCS has spent more than $1 billion on acquisitions over the past ten months.
The MHP acquisition comes at a time when European IT and engineering businesses have faced pressure from macroeconomic challenges. Other Indian IT firms have made similar moves in the region in recent years, with HCLTech acquiring ASAP Group in 2023 for around ₹2,300 crore, and Persistent Systems more recently acquiring Nagarro for ₹11,820 crore.
Advertisement
K Krithivasan, CEO and Managing Director of TCS, said the company was pleased to partner with Porsche in its transformation journey, adding that as AI, software and data reshape the automotive industry, the partnership combines TCS' capabilities in AI, engineering and technology with MHP's automotive consulting expertise.
Michael Leiters, CEO of Porsche AG, said the transfer of MHP to TCS marked another step in Porsche's strategy to focus more sharply on its core business.
Through the acquisition, TCS said it would gain MHP's automotive consulting customers along with expanded presence in markets including Germany, Romania, the UK, the US, India and Mexico through MHP's subsidiaries. MHP is wholly owned by Porsche AG and was incorporated on May 13, 1996.
