Tata Consultancy Services (TCS) on August 24 announced the purchase of ‘MHP Management-und IT-Beratung GmbH’, the IT consulting subsidiary of German car maker Porsche. TCS is making this acquisition at an enterprise value of 320 million euros i.e. approximately Rs 3,573 crore. Through this deal, TCS will acquire 100% shares of this IT consulting company of Porsche. This entire acquisition process is expected to be completed within the next three to four months. MHP’s expertise in automotive and digital transformation TCS’s third big deal in 10 months This strategic partnership between TCS and Porsche has been done to advance AI transformation based on next-generation manufacturing technology and software-defined mobility. This is the third big deal of TCS within the last 10 months. Earlier in December, TCS had bought Florida-based Salesforce consulting and AI solutions firm ‘Coastal Cloud’ for $700 million. Apart from this, the company had also acquired digital marketing service provider ‘ListEngage Midco’ for $72.8 million. With the MHP deal, TCS has spent more than $1 billion on mergers and acquisitions (MA) in 10 months. The deal comes amid pressure on the IT sector in Europe. This acquisition of MHP has taken place at a time when European IT and engineering businesses are facing immense pressure due to macroeconomic challenges. Earlier, HCLTech had acquired ASAP Group in 2023 for around ₹2,300 crore, while recently Persistent Systems had bought Nagarro for ₹11,820 crore. ₹ 13,958 crore 5-year deal with Porsche Immediately after this acquisition of MHP, Porsche has also signed a big 5-year strategic deal worth ₹ 1.25 billion (about Rs 13,958.75 crore) with MHP and TCS. TCS says the deal will position TCS as a strategic consulting and technology partner for Porsche and other European automotive and industrial customers. AI Mobility Center of Excellence will be built for Porsche Under the deal, TCS will establish a dedicated ‘AI Mobility Center of Excellence’ for Porsche. This center will work to develop new innovations in the areas of manufacturing, engineering, operations and customer experience. Following this acquisition, TCS will get access to MHP’s existing automotive consulting customers. Also, through MHP’s subsidiaries, TCS will expand into global markets like Germany, Romania, UK, USA, India and Mexico. Formed on May 13, 1996, MHP was till now a fully owned subsidiary of Porsche AG. What is MHP and Software-Defined Mobility? Also read this news… Gold increased by ₹ 1534 and reached ₹ 1.62 lakh: This month it became costlier by ₹ 19 thousand, silver today fell by ₹ 1239 to ₹ 2.45 lakh. Gold prices remained on the rise on August 24. According to India Bullion and Jewelers Association (IBJA), the price of 10 grams of 24 carat gold has increased by Rs 1534 to Rs 1.62 lakh. At the same time, the price of one kg silver decreased by Rs 1239 to Rs 2.45 lakh. In this month i.e. August, gold has become costlier by Rs 19 thousand and silver by Rs 29 thousand in 24 days. According to experts, gold can go up to Rs 1 lakh 70 thousand by the end of this year. Read the full news…
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TCS to buy Porsche’s IT company: 100% stake deal for ₹3,573 crore; AI mobility center will be built in India
