India's TCS to Acquire Porsche's MHP for €320 Million

en.Wedoany.com Reported - On August 24, TCS Netherlands B.V., a subsidiary of India's Tata Consultancy Services (TCS), signed a share purchase agreement to acquire 100% of the shares of MHP Management- und IT-Beratung GmbH and its subsidiaries held by Porsche AG, at an enterprise value of €320 million. The transaction will be settled in cash and is expected to be completed within three to four months.

The €320 million represents MHP's enterprise value, not the final cash payment amount at closing. Under the share purchase agreement, the purchase price will also be subject to customary adjustments based on MHP's net debt and working capital at the time of closing. Prior to completion, the transaction is subject to EU merger control review, the EU Foreign Subsidies Regulation review, and Romania's foreign direct investment screening, as well as a certificate of no objection from the German Federal Ministry for Economic Affairs and Energy.

MHP is a management and IT consulting firm for the automotive and industrial sectors under Porsche, with business covering corporate consulting, digital transformation, artificial intelligence, SAP systems, manufacturing digitalization, connected vehicles, and software-defined mobility. The company employs approximately 4,500 people and, in addition to Germany, operates through subsidiaries in Romania, the United Kingdom, the United States, India, and Mexico.

MHP's revenue for 2023, 2024, and 2025 was €828 million, €830 million, and €742 million, respectively. Based on 2025 revenue, the €320 million enterprise value represents approximately 0.43 times MHP's revenue for that year. Upon closing, MHP will transition from a wholly owned subsidiary of Porsche to a TCS group company.

In addition to the acquisition agreement, Porsche has signed a five-year strategic services contract with TCS and MHP valued at €1.25 billion. This contract will take effect after the completion of the MHP equity transaction. The contract value and the €320 million acquisition enterprise value are two separate figures and cannot be combined into the purchase price.

Under the five-year contract arrangement, TCS will establish an AI Mobility Center of Excellence for Porsche, covering automotive engineering, manufacturing, operations, customer experience, and enterprise transformation. The three parties will also develop next-generation automotive technology services and a software-defined mobility platform, scaling AI applications from individual pilots to Porsche's production and business processes. The five-year services contract will commence after regulatory approvals are obtained and the MHP equity transfer is formally completed.