TCS will acquire Porsche’s MHP consulting and software unit as part of a €1.25 billion partnership ($1.46) focused on AI, automotive technology and software-defined mobility.
Tata Consultancy Services (TCS) will acquire Porsche AG’s automotive consulting and software unit, MHP, as part of a broader five-year partnership focused on AI and automotive technology, the Indian IT major announced on Monday. The takeover comes as part of a wider partnership under which Porsche has committed €1.25 billion ($1.46 billion) to the Indian firm and MHP.
MHP specialises in business consulting and software-defined mobility. The deal has an enterprise value of €320 million and is expected to close over the next three to four years, according to TCS.
The five-year pact will focus on deploying AI across Porsche’s engineering, manufacturing, operations and customer experience verticals, as well as developing automotive technology and software-defined mobility platforms.
Porsche is part of the Volkswagen Group, which is under pressure to cut costs and trim its lineup as it faces growing competition from Chinese automakers, tariffs and rising EV costs.
Porsche has already started trimming its operations and sold its stakes in premium sports and luxury car brands Bugatti and Rimac earlier this year. It has also scrapped three subsidiaries, including its battery unit Cellforce and its e-bole business, resulting in around 500 job cuts.
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