Tata Consultancy Services (TCS) has agreed to acquire Porsche AG’s management and IT consulting subsidiary MHP for an enterprise value of €320 million ($373 million). The acquisition comes alongside a five-year strategic partnership under which Porsche has committed €1.25 billion ($1.46 billion) in business to TCS and MHP.

TCS Acquires MHP

TCS Netherlands B.V. will acquire 100% of MHP Management- und IT-Beratung GmbH, Porsche’s automotive and industrial consulting business. The transaction remains subject to customary regulatory approvals and closing conditions and is expected to be completed within the next three to four months.

MHP specialises in business consulting, digital transformation, artificial intelligence, SAP implementation, manufacturing digitalisation and software-defined mobility. The company has more than 4,500 employees and reported approximately €743 million in revenue in 2025.

$1.46 Billion Partnership

Alongside the acquisition, TCS and Porsche have entered into a five-year strategic partnership worth €1.25 billion ($1.46 billion).

The agreement will focus on applying AI and advanced digital technologies across Porsche’s engineering, manufacturing, operations and customer-experience functions. It will also cover automotive technology and software-defined mobility platforms.

Major Automotive Push

The deal gives TCS deeper expertise in the automotive sector at a time when carmakers are accelerating investments in software, connected vehicles, AI and digital manufacturing.

The acquisition of MHP is expected to strengthen TCS’s consulting capabilities in Europe while adding specialised knowledge in automotive technology and industrial transformation.

Porsche confirmed on Monday that it had signed an agreement for the sale of MHP to TCS, describing the transaction as another step in its strategic realignment.

AI Reshapes IT Industry

The transaction comes amid a broader shift in the global IT services industry. Companies are increasingly moving from traditional outsourcing towards AI-led transformation and technology partnerships.

India’s approximately $315 billion IT industry has faced pressure as some customers have delayed technology spending while reassessing their investment priorities in the AI era.

For TCS, the Porsche agreement provides a significant long-term engagement while simultaneously expanding its automotive consulting capabilities.

Porsche Cuts Costs

Porsche is undergoing a broader restructuring as it faces competition from Chinese automakers, tariffs, high electric-vehicle costs and pressure to streamline its operations.

The German sports-car maker has already taken steps to reduce its portfolio. Earlier this year, Porsche sold stakes in Bugatti and Rimac and discontinued several businesses, including its Cellforce battery operation and e-bike activities. The restructuring resulted in more than 500 job losses, according to Reuters.

TCS Expands M&A Strategy

The MHP transaction also adds to TCS’s recent acquisition activity. The company has been using acquisitions to strengthen specialised capabilities in areas such as AI, cloud, consulting and digital transformation.

Market analysts expect the MHP acquisition to contribute positively to TCS’s revenue, although the immediate impact on the company’s overall capabilities and stock valuation is expected to be relatively limited.

What It Means

The combined transaction represents a major strategic relationship between India’s largest IT services company and one of Germany’s leading premium automakers.

TCS gets access to MHP’s automotive consulting expertise and workforce, while Porsche secures a long-term technology partner to accelerate AI, digital engineering and software-defined mobility. The acquisition is expected to close within three to four months, subject to regulatory and other closing requirements.