Tata Consultancy Services (TCS) and Porsche have signed an agreement under which Tata Consultancy Services will acquire management and IT consultancy MHP from Porsche.
The transaction marks another milestone in Porsche’s “Sportwagenschmiede 35” strategy, as the sports car manufacturer sharpens its focus on its core business.
Under the planned transaction, Tata Consultancy Services intends to acquire MHP in its entirety as a group of companies. The acquisition remains subject to customary regulatory and competition law approvals and is expected to be finalised in the coming months.
Tata Consultancy Services and Porsche Plan Strategic Collaboration
Alongside the ownership change, Porsche, Tata Consultancy Services and MHP plan to establish a strategic collaboration focused on digital solutions and artificial intelligence.
The partnership is intended to accelerate the development, scaling and integration of AI applications across key business areas.
The companies aim to further advance Porsche’s digital transformation while unlocking additional potential across its entire value chain.
“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,” says Dr Michael Leiters, Chairman of the Executive Board of Porsche AG.
“At the same time, we are gaining a strategic partner in TCS. By combining Porsche’s automotive expertise with TCS’s digital technology and AI capabilities, we will further strengthen our innovative power, increase efficiency and boost our competitiveness in an increasingly data- and software-driven world of mobility.”
The planned partnership will bring together Porsche’s automotive expertise with Tata Consultancy Services’ capabilities in digital technology and artificial intelligence, while allowing MHP to continue its established consultancy operations.
MHP to Retain Brand and Operate Independently
Following the acquisition, MHP will retain its brand and continue to operate as an independent consultancy under its existing name. As part of Tata Consultancy Services, a company within the globally active Tata Group, MHP is expected to benefit from additional innovation and development opportunities.
The companies said these opportunities will enable MHP to provide its clients with additional expertise while continuing its existing operations.
Porsche and MHP will also continue their long-standing collaboration after the change in ownership. MHP will remain an important partner for the digitalisation and transformation of various areas of Porsche’s business, particularly in artificial intelligence.
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MHP’s Management and IT Consultancy Business
MHP has developed into a leading internationally active management and IT consultancy over the past several years. For more than 30 years, the company has supported businesses in managing complex strategy and IT transformations across the entire value chain.
MHP combines industry knowledge with technological expertise, translating technological innovation into business models, processes and scalable industrial solutions.
The consultancy serves multiple industries, including automotive, manufacturing, aerospace, defense, energy and the public sector.
As Porsche’s long-standing strategic partner, MHP has developed extensive expertise in automotive industry transformation and has successfully delivered numerous complex transformation programmes.
MHP’s key future growth and expertise areas include artificial intelligence, software-defined manufacturing, supply chain management, integration and scaling, cyber security, programme management, and platforms and ecosystems.
MHP employs more than 4,500 people globally and is headquartered in Ludwigsburg, near Stuttgart.
Tata Consultancy Services to Expand AI and Automotive Capabilities
K. Krithivasan, CEO and Managing Director, Tata Consultancy Services, said the partnership would combine the technology company’s capabilities in AI, engineering, technology and business transformation with MHP’s automotive consulting expertise.
“TCS is pleased to partner Porsche in its transformation journey. As AI, software and data redefine the automotive industry, this partnership brings together TCS’ capabilities in AI, engineering and technology and business transformation with MHP’s strong 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.”
The acquisition will bring MHP into the Tata Consultancy Services group while maintaining its existing brand and independent consultancy structure.
Tata Consultancy Services Global Presence
Tata Consultancy Services is a provider of IT services, consultancy services and technology solutions and is part of the Tata Group. The company serves clients across numerous sectors and has a global presence in 55 countries.
The planned acquisition of MHP is expected to create additional opportunities for collaboration between Tata Consultancy Services, Porsche and MHP in digital solutions and artificial intelligence, while continuing the existing relationship between Porsche and MHP.
