TCS to buy Porsche's IT consulting unit MHP for €320 million

Tata Consultancy Services (TCS) has agreed to acquire MHP, the IT consulting arm of Porsche, in a transaction valued at €320 million. The acquisition marks a significant expansion of TCS's capabilities in automotive technology and digital transformation services, particularly in the premium automotive sector.

The purchase is part of a wider strategic partnership agreement between TCS and the German sports car manufacturer, with the total five-year collaboration framework valued at €1.25 billion. The expanded scope of engagement signals both companies' commitment to deepening their technological and commercial ties in the coming years.

MHP specializes in IT consulting, software development, and digital solutions for the automotive industry. The acquisition will strengthen TCS's position in providing end-to-end technology services to automotive clients globally. TCS, India's largest IT services firm by revenue, has been actively expanding its consulting and specialized service offerings to capture growing demand from manufacturing and automotive sectors.

The transaction is expected to enhance TCS's ability to serve Porsche with advanced digital solutions while extending these capabilities to other premium automotive clients. The deal underscores the growing strategic importance of IT partnerships in the automotive industry as manufacturers accelerate their digital transformation and software-driven innovation initiatives.