Tata Consultancy Services (TCS) is set to acquire MHP, the IT and consulting subsidiary of Porsche, for €320 million ($373.4 million) in an all-cash transaction, according to a report by the Economic Times.
Separately, TCS has signed a five-year agreement with Porsche worth €1.25 billion ($1.45 billion). The two transactions are independent of each other, with the MHP acquisition expected to close within three to four months, subject to regulatory approvals from the European Commission and other authorities.
Headquartered in Ludwigsburg, Germany, MHP provides consulting and technology services across automotive and industrial sectors, including digital transformation, artificial intelligence, SAP transformation, manufacturing digitalisation, connected mobility and software-defined mobility. The company has around 4,500 employees and reported a turnover of €742 million in 2025.
The Porsche engagement will make the automaker a new TCS client and is expected to serve as the foundation for a broader AI transformation partnership. As part of the agreement, TCS will also establish a centre of excellence dedicated to Porsche.
K Krithivasan, chief executive officer, TCS, said the acquisition would enable MHP to expand beyond its current European footprint and operate at a global scale. He added that Porsche would be the “customer zero” for the centre, with solutions subsequently extended to TCS' wider automotive client base.
Michael Leiters, chief executive officer, Porsche, said MHP would benefit from TCS' broader capabilities and global reach, adding that the deal could help expand MHP's business opportunities.
The acquisition is expected to weigh on TCS' operating margins by 50–60 basis points over the next four to six quarters. Krithivasan said the company expects to improve margins over time through greater offshore delivery and other operational measures.
The MHP deal marks TCS' third significant acquisition in the past year. It follows the $72.8 million acquisition of digital marketing services company ListEngage and the $700 million acquisition of Salesforce consulting and AI solutions firm Coastal Cloud.
Analysts expect the combination of MHP's automotive expertise with TCS' global technology capabilities to create opportunities across AI, data and digital transformation, although the acquisition is likely to put pressure on margins in the near term.
