TCS to buy Porsche's IT consultancy for over Rs 3,500 cr

The country’s largest IT services firm, Tata Consultancy Services (TCS), on Monday said it will acquire sports car manufacturer Porsche’s management and IT consultancy subsidiary MHP for over Rs 3,574 crore ($373.42 million). The acquisition is expected to be completed within 3-4 months.MHP, headquartered in Ludwigsburg, near Stuttgart, Germany, is a leader in automotive and industrial consulting in Europe, and has expertise in business consulting, digital transformation, AI, SAP transformation, manufacturing digitalisation, connected and software-defined mobility. The company’s turnover as on CY2025 stood at $865.86 million, and it employs over 4,500 people.In a BSE filing, TCS said the acquisition will anchor a long-term AI transformation partnership between the company and Porsche. To enable this partnership, Porsche has signed a five-year strategic deal with MHP and TCS amounting to $1.46 billion.TCS launches agentic AI platform to transform drug development As part of the deal, TCS will establish a dedicated AI Mobility Centre of Excellence (CoE) for Porsche to drive innovation across manufacturing, engineering, operations and customer experience. TCS’ expertise provides a strong foundation to scale AI transformation and deliver business outcomes for Porsche’s organisation and its mobility ecosystem. Also, the acquisition will strengthen TCS’ presence in the German market and amongst European automotive and industrial customers, the company said in a statement.The sports car manufacturer will sharpen its strategic focus by concentrating firmly on its core business. In a statement, Porsche said that the aim is to further advance its digital transformation and tap into additional potential across the entire value-chain."Porsche is taking another important step in its strategy to focus resolutely on its core business with the transfer of MHP to TCS,” Michael Leiters, Chairman of the Executive Board of Porsche, said. “At the same time, we are gaining a strategic partner in TCS. By combining Porsche’s automotive expertise with TCS’s digital technology and AI capabilities, we will further strengthen our innovative power, increase efficiency and boost our competitiveness in an increasingly data- and software-driven world of mobility," he added.K Krithivasan, CEO and MD, TCS, said, “As AI, software, and data redefine the automotive industry, this partnership brings together TCS’ capabilities in AI, engineering, technology and business transformation with MHP’s strong automotive consulting expertise."

Source: Deccan Herald