TCS to acquire Porsche arm for $373 million, inks $1.4 billion deal

BENGALURU: In a mega deal that boosts its manufacturing and AI playbook, TCS will acquire MHP Management, the consulting and technology subsidiary of German sports car maker Porsche, for $373 million. The transaction will also anchor a five-year strategic partnership worth $1.4 billion.The partnership will focus on driving AI-led transformation across Porsche's engineering, manufacturing, operations, customer experience and enterprise functions, while also developing next-generation automotive technology services and software-defined mobility platforms.Porsche said the decision is part of its "Sportwagenschmiede 35" strategy, which aims to strengthen profitability and cash flow through 2035. The sports car manufacturer said it plans to sharpen its strategic focus by concentrating on its core business.TCS said its Netherlands subsidiary, Tata Consultancy Services Netherlands, approved the acquisition of MHP's equity shares from Porsche and signed a share purchase agreement for the proposed transaction.