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TCS buys Porsche subsidiary MHP for €320 million and expands AI mobility
The deal comes alongside a five-year €1.25 billion strategic agreement with Porsche to create an AI mobility center of excellence.
Tata Consultancy Services, or TCS, is stepping up mergers and acquisitions to scale its artificial intelligence capabilities and expand its global reach, announcing it will acquire Porsche AG’s fully owned IT and consulting subsidiary MHP for a cash consideration of €320 million.
TCS and Porsche also signed a five-year strategic agreement worth €1.25 billion, under which TCS will set up a dedicated AI mobility center of excellence designed to help Porsche industrialize AI use cases.
According to analysis cited by LiveMint Markets, the buyout is expected to provide a near-term revenue lift, with MHP projected to contribute about 3% to TCS’s FY28 estimated revenue. The analysis also points to a typical valuation context for deals like this, around 0.4x EV to sales.
LiveMint Markets also highlights that MHP’s revenue fell 11% in 2025 to €742 million, reflecting weaker discretionary spending in the automotive sector and a slowdown in EV-related demand. The announcement marks TCS’s third acquisition in the last 12 months, following deals announced with US-based Salesforce consultancy Coastal Cloud in December and ListEngage in October.