India\u2019s Tata Consultancy Services (TCS) has agreed to acquire MHP, Porsche AG\u2019s management and IT consulting subsidiary, for an enterprise value of \u20ac320 million, or about $373 million, in a deal that expands the Indian technology giant\u2019s presence in automotive software and artificial intelligence<\/p>\n
The acquisition is part of a broader five-year strategic partnership under which Porsche has committed \u20ac1.25 billion ($1.46 billion,) to TCS and MHP for technology and consulting services.<\/p>\n
The partnership will focus on deploying artificial intelligence across Porsche\u2019s engineering, manufacturing, operations and customer experience functions. It will also cover next-generation automotive technology and software-defined mobility platforms.<\/p>\n
READ: Tata Transformation Prize 2024 awards its second cohort of winners<\/a>\u00a0(November 26, 2024)<\/p>\n MHP specializes in automotive and industrial consulting, business transformation, AI, SAP, manufacturing digitalization and connected mobility. TCS said it will acquire 100% of the Germany-based company through its subsidiary, TCS Netherlands. The transaction remains subject to regulatory and antitrust approvals and is expected to close within three to four months.<\/p>\n As part of the agreement, TCS will establish an AI Mobility Centre of Excellence for Porsche. The center is expected to support AI-led innovation across the automaker\u2019s operations and help develop software-driven mobility technologies.<\/p>\n For TCS, the acquisition provides<\/a> access to MHP\u2019s specialized automotive consulting capabilities while adding to its global engineering and technology portfolio. The move comes as India\u2019s $315 billion IT services industry faces pressure from clients reducing or delaying traditional technology spending amid the rapid adoption of AI.<\/p>\n The deal also reflects Porsche\u2019s effort to concentrate on its core business as the German automaker faces pressure from Chinese competitors, tariffs and the high costs associated with electric vehicles.<\/p>\n Porsche said the sale of MHP is part of its broader \u201cSportwagenschmiede 35\u201d strategy, under which it is sharpening its focus on its core sports-car business. The company has also been restructuring its portfolio, including the sale of stakes in Bugatti and Rimac and the closure of several subsidiaries earlier this year.<\/p>\n