Tata Group Major IT Company Acquires 100% Stake in Porsche's IT Arm MHP for EUR 320 Million; Signs EUR 1.25 Billion Strategic Deal

On Monday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index falling 32.95 points (0.14 per cent) to 24,219.05. Amid the market movement, Tata Consultancy Services share price fell 0.78 per cent to Rs 2,284.10, declining Rs 17.90 per share, after the company announced the acquisition of 100 per cent of MHP Management- und IT-Beratung GmbH, Porsche AG's management and IT consulting subsidiary, for an enterprise value of EUR 320 million.

TCS Approves EUR 320 Million Acquisition of MHP

Tata Consultancy Services Netherlands B.V., a wholly owned subsidiary of TCS, has approved the acquisition of 100 per cent of the equity shares of MHP Management- und IT-Beratung GmbH, a subsidiary of Porsche AG. The transaction carries an enterprise value of EUR 320 million, excluding customary post-closing adjustments for net debt and working capital. The acquisition will be completed through cash consideration.

Following the approval, TCS has executed a Share Purchase Agreement to record the terms and conditions of the proposed acquisition. The transaction remains subject to regulatory approvals and fulfilment of conditions precedent specified in the agreement. The acquisition is expected to be completed within 3 to 4 months.

EUR 1.25 Billion Five-Year Strategic Partnership With Porsche

The acquisition forms part of a broader strategic partnership between TCS and Porsche. As part of the partnership, Porsche has signed a five-year strategic deal with MHP and TCS amounting to EUR 1.25 billion.

The partnership will focus on industrialising AI across Porsche's engineering, manufacturing, operations, customer experience and enterprise transformation agenda. TCS will also establish a dedicated AI Mobility Centre of Excellence for Porsche to develop and scale AI use cases across the mobility value chain

The collaboration will combine Porsche's automotive engineering and brand experience with TCS' capabilities in AI, product engineering, technology and business transformation. The partnership is intended to support next-generation automotive technology services and software-defined mobility platforms.

MHP Records EUR 742 Million Turnover in CY2025

MHP is a European automotive and industrial consulting company with expertise across business consulting, digital transformation, artificial intelligence, SAP transformation, manufacturing digitalisation, connected mobility and software-defined mobility.

The company reported a turnover of EUR 742 million in CY2025 and has approximately 4,500 employees. MHP was incorporated on May 13, 1996 and is headquartered in Ludwigsburg, Germany. It has operations through subsidiaries in Romania, the UK, the USA, India and Mexico.

MHP's turnover stood at EUR 828 million in CY2023 and increased to EUR 830 million in CY2024 before declining to EUR 742 million in CY2025. The CY2025 turnover represents a decline of approximately 10.6 per cent year-on-year, while CY2024 turnover increased by approximately 0.2 per cent over CY2023

Acquisition to Strengthen TCS' European Automotive Presence

The acquisition is expected to strengthen TCS' presence in the German market and among European automotive and industrial customers. MHP brings experience in complex automotive and industrial transformation programmes, which complements TCS' global scale and engineering capabilities.

MHP's business covers business transformation, AI, SAP, manufacturing digitalisation and connected mobility. The company also operates across industries including automotive, manufacturing, Aerospace, Defence, energy and the public sector, with capabilities in artificial intelligence, software-defined manufacturing, supply chain management, cybersecurity, programme management and platforms and ecosystems.

Management Commentary

K. Krithivasan, CEO and Managing Director, Tata Consultancy Services, said: “TCS is pleased to partner Porsche in its transformation journey.” He added that the partnership combines TCS' capabilities in AI, engineering, technology and business transformation with MHP's automotive consulting expertise to industrialise AI at scale for Porsche.

Dr. Michael Leiters, CEO, Porsche AG, said that the transfer of MHP to TCS represents another step in Porsche's strategy to focus on its core business, while TCS becomes a strategic partner. He said the combination of Porsche's automotive expertise with TCS' digital technology and AI capabilities is expected to strengthen innovation, improve efficiency and support competitiveness in a data and software-driven mobility environment.

Regulatory Approvals Required

The proposed acquisition requires approvals from the European Commission under the EU merger control regulation, the EU Foreign Subsidies Regulation and the Commission for the Examination of Foreign Direct Investments in Romania under applicable Romanian foreign direct investment laws.
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In addition, an application for a certificate of non-objection will be submitted to the Federal Ministry of Economy and Energy in Germany.

About Tata Consultancy Services

Tata Consultancy Services is a technology services company that provides AI, engineering, technology and business transformation services to organisations globally. The company has a workforce spread across 55 countries and 202 service delivery centres worldwide. TCS reported consolidated revenue of more than USD 30 billion for the financial year ended March 31, 2026.

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Disclaimer: The article is for informational purposes only and not investment advice.