Porsche sells MHP consulting unit to TCS in $1.5 billion AI deal

Porsche sells MHP consulting unit to TCS in $1.5 billion AI deal

Tue, August 25, 2026 at 3:54 PM GMT+3 2 min read

• P911.DE -1.88%
• TCS.NS -1.14%

Porsche agreed to sell its management and IT consulting subsidiary, MHP, to Tata Consultancy Services as part of a five-year partnership valued at 1.25 billion euros ($1.46 billion), the companies said Monday.

The price tag for MHP comes to 320 million euros, CNBC reported. Alongside the acquisition, TCS will stand up a dedicated AI Mobility Centre of Excellence for Porsche, targeting manufacturing, engineering, operations, and customer experience, the company said.

MHP, headquartered in Ludwigsburg, Germany, employs around 4,500 people and has provided management and IT consulting for more than 30 years. Its work spans industries including automotive, aerospace, defense, and energy. Under the terms of the agreement, MHP will retain its brand name and continue operating as an independent consultancy within TCS.

Porsche and MHP will maintain their existing working relationship after the ownership transfer, with MHP continuing to support the automaker's digital and AI initiatives, Porsche said.

The divestiture fits within Porsche's "Sportwagenschmiede 35" strategy, an initiative designed to sharpen the automaker's focus and strengthen its financial performance. "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," Porsche AG Chairman Dr. Michael Leiters said in a statement. "At the same time, we are gaining a strategic partner in TCS."

TCS CEO and Managing Director K. Krithivasan said the partnership would bring together TCS's AI and engineering capabilities with MHP's 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," he said in a statement.

The acquisition and partnership remain subject to regulatory and competition law approvals, and the transaction is expected to close in the coming months, Porsche said. Once complete, MHP will become part of TCS, which operates across 55 countries and reported revenues of over $30 billion in the fiscal year ended March 31, 2026.

Deutsche Bank AG served as financial advisor to TCS on the transaction, and Noerr acted as legal counsel, the company said.