Porsche agrees to sell MHP to Tata Consultancy Services

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TCS plans to acquire 100 per cent of Porsche’s management and IT consultancy MHP while entering a five-year strategic partnership focused on AI and digital transformation

Porsche and Tata Consultancy Services (TCS) have signed an agreement providing for the sale of management and IT consultancy MHP Management- und IT-Beratung GmbH to the Indian technology company. The transaction has not yet been completed. TCS, through a subsidiary, intends to acquire 100 per cent of MHP, with the deal remaining subject to customary regulatory and competition-law approvals. Porsche expects the transaction to be finalised in the coming months. The move forms part of Porsche’s “Sportwagenschmiede 35” strategy, through which the sports car manufacturer is sharpening its focus on its core automotive business. Porsche and TCS are simultaneously establishing a strategic technology partnership centred on digital solutions and artificial intelligence.

Five-year AI partnership

TCS says the partnership is backed by a five-year strategic deal covering AI services across Porsche’s mobility value chain.

As part of the agreement, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche. It will focus on applying AI across manufacturing, engineering, operations and customer experience, turning AI concepts into secure and scalable applications.

The collaboration is structured around three main areas: scaling AI applications across Porsche’s operations and product value chain; establishing a longer-term platform for AI-led transformation and business outcomes; and TCS’s proposed acquisition of MHP.

Porsche CEO Dr Michael Leiters said the agreement would allow the company to concentrate more closely on its core business while gaining TCS as a strategic partner. TCS CEO and Managing Director K. Krithivasan said the companies intend to industrialise AI at scale across Porsche’s value chain.

MHP will retain its name

Following completion of the acquisition, MHP is expected to retain its brand and continue operating as an independent consultancy under its existing name.

Porsche and MHP will also continue their relationship after the ownership change, with MHP remaining a partner for Porsche’s digitalisation and transformation activities, particularly in artificial intelligence.

TCS says the acquisition will strengthen its position in Germany and among European automotive and industrial customers.

MHP employs around 4,500 people

Headquartered in Ludwigsburg, Germany, MHP has operated for more than 30 years and employs around 4,500 people worldwide.

Its work spans automotive and manufacturing, aerospace, defence, energy and the public sector. Areas of expertise include artificial intelligence, software-defined manufacturing, supply-chain management, integration and scaling, cybersecurity, programme management, and digital platforms and ecosystems. TCS also highlights MHP’s experience in business transformation, SAP, manufacturing digitalisation and connected mobility.

TCS operates across 55 countries and 202 service-delivery centres and generated consolidated revenue of more than US$30 billion (approximately AED 110.18 billion) in the financial year ended March 31, 2026.

Deal reportedly valued at €320 million

Neither Porsche nor the public TCS press release states the financial terms of the acquisition. However, Reuters reports that the MHP transaction carries an enterprise value of €320 million (approximately US$373.1 million / AED 1.37 billion).

Reuters also reports that Porsche’s broader five-year agreement with TCS and MHP is worth €1.25 billion (approximately US$1.46 billion / AED 5.35 billion).

Deutsche Bank AG acted as financial adviser to TCS, while Noerr served as its legal counsel.

Until the required approvals are obtained and the transaction closes, MHP remains under Porsche ownership; the agreement represents a proposed sale rather than a completed transfer.