TCS to Acquire Porsche IT Unit MHP for €320 Million
- On Monday, Tata Consultancy Services announced it will acquire Porsche's management and IT consulting subsidiary, MHP Management- und IT-Beratung GmbH, for an enterprise value of €320 million.
- Porsche CEO Michael Leiters stated the transfer helps Porsche focus on its core business while gaining TCS as a strategic technology partner, as the Volkswagen group faces pressure from Chinese competitors, tariffs, and EV costs.
- As part of a broader five-year strategic partnership worth €1.25 billion , MHP—which employs around 4,500 people—will help "industrialize AI at scale for Porsche," according to TCS.
- TCS will establish a dedicated AI Mobility Centre of Excellence to drive innovation across Porsche's value chain; the acquisition is expected to close within three to four months, subject to regulatory approvals.
- This deal occurs as AI disrupts traditional outsourcing models in India's $315 billion IT industry; earlier this year, Porsche sold stakes in Bugatti and Rimac and scrapped three subsidiaries, including Cellforce, costing over 500 jobs.
23 Articles
23 Articles
TCS buys Porsche’s MHP for €320m and lands a €1.25bn contract with it
Tata Consultancy Services is buying MHP, the management and IT consultancy Porsche has owned for years, for €320m, and signing a five-year engagement with the carmaker worth €1.25bn on top of it. The two halves are what make the deal worth reading, because Porsche is simultaneously disposing of an asset and committing to buy back […] This story continues at The Next Web
Porsche inks US$1.5 billion AI deal with India’s Tata Consultancy
Porsche partnered with Tata Consultancy Services for deploying artificial intelligence in a 1.25 billion euros (US$1.5 billion) deal, while agreeing to sell its consulting unit to the Indi... Read more at The Business Times.
The transaction, the value of which was not disclosed, is still subject to regulatory and competition approvals, according to a press release. The Zuffenhausen-based company (southern Germany) stated its intention to maintain close cooperation with MHP after the change in ownership, particularly in the areas of artificial intelligence and digital transformation used in its industrial and administrative processes. With this acquisition, the grou…
Porsche Inks $1.5 Billion AI Deal With India’s Tata Consultancy
Porsche AG partnered with Tata Consultancy Services Ltd. for deploying artificial intelligence in a 1.25 billion euros ($1.5 billion) deal, while agreeing to sell its consulting unit to the Indian software services company.
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