Tata Consultancy Services has agreed to acquire MHP, Porsche’s management and IT consulting business, as the sports car manufacturer sharpens its focus on its core operations while establishing a broader strategic technology partnership with TCS.
TCS plans to acquire MHP in its entirety as a group of companies. The transaction remains subject to customary regulatory and competition approvals and is expected to close in the coming months.
MHP will retain its existing brand and continue operating as an independent consultancy following the acquisition.
The deal is another step in Porsche’s “Sportwagenschmiede 35” strategy, which is focused on concentrating the company more firmly on its core automotive business.
Porsche, TCS and MHP also plan to establish a strategic collaboration spanning digital solutions and artificial intelligence.
The companies intend to accelerate the development, scaling and integration of AI applications across key Porsche business functions, with the broader goal of advancing the automaker’s digital transformation and identifying additional opportunities across its value chain.
Porsche expects the partnership to combine its automotive and industrial expertise with TCS’ capabilities in AI, digital technologies and business transformation.
MHP will remain an important technology and transformation partner to Porsche following the ownership change, particularly across artificial intelligence initiatives.
The companies said the transaction is designed to give MHP greater access to global innovation capabilities, technology expertise and development resources through TCS and the broader Tata Group.
MHP has developed into an internationally active management and IT consultancy over more than three decades.
The company employs more than 4,500 people worldwide and is headquartered in Ludwigsburg, Germany, near Stuttgart.
Its consulting work spans strategy, technology and IT transformation across the entire value chain.
MHP serves customers across automotive, manufacturing, aerospace, defense, energy and the public sector.
Its future growth areas include artificial intelligence, software-defined manufacturing, supply chain management, systems integration, cybersecurity, program management and digital platforms and ecosystems.
MHP has also built deep automotive-industry expertise through its longstanding relationship with Porsche and experience implementing complex transformation programs.
For TCS, the acquisition adds specialized automotive consulting capabilities to an organization with a global presence across 55 countries.
The combination is intended to create a stronger platform for deploying AI and software technologies across mobility and industrial businesses, particularly as automotive manufacturers increasingly incorporate software, data and artificial intelligence into product development, manufacturing and operations.
Porsche expects the broader relationship with TCS to support both innovation and efficiency as software and data become more central to the competitive dynamics of the automotive industry.
For MHP, joining TCS provides access to a much larger technology and consulting organization while preserving its brand, operating identity and longstanding relationship with Porsche.
KEY QUOTES:
“Porsche is taking another important step in its strategy to focus resolutely on its core business with the transfer of MHP to Tata Consultancy Services. 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.”
Dr. Michael Leiters, Chairman Of The Executive Board Of Porsche AG
“TCS is pleased to partner Porsche in its transformation journey. As AI, software and data redefine the automotive industry, this partnership brings together TCS’ capabilities in AI, engineering and technology and business transformation with MHP’s strong automotive consulting expertise. Together, we will industrialize AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future.”
K. Krithivasan, CEO And Managing Director Of Tata Consultancy Services