Thought Leadership
Porsche is selling its consulting subsidiary MHP in full to Indian IT services provider Tata Consultancy Services. The deal is intended to help Porsche sharpen its focus on its core business.
Porsche is taking another step away from its IT consulting business. The Stuttgart (Germany) based sports car maker has signed an agreement with Tata Consultancy Services (TCS) for the full sale of management and IT consultancy MHP, the two companies announced today. TCS is part of the Indian conglomerate Tata Group and, with operations in around 55 countries, ranks among the world’s largest IT services providers.
For Porsche, the sale is part of its ongoing cost saving strategy, “Sports Car Maker 35,” which is designed to refocus the company on its core business of building sports cars. Porsche CEO Michael Leiters said the sale of MHP represents “another important step in our strategy to focus consistently on our core business,” according to the company statement.
Deal Still Subject to Approval
Neither company disclosed the purchase price. What is clear, however, is that TCS intends to acquire 100 percent of MHP, including the entire corporate group. The transaction remains subject to approval by antitrust and regulatory authorities, with both sides expecting the deal to close in the coming months.
Following the acquisition, MHP will continue to operate as an independent consulting firm under its existing brand rather than being absorbed into the TCS organization. Based in Ludwigsburg, Germany, the company employs more than 4,500 people, according to its own figures. For more than 30 years, MHP has advised primarily industrial clients on strategy and IT transformation projects, with particular expertise in the automotive, aerospace and public sectors.
Porsche to Remain a Customer, AI Cooperation Planned
Despite the change in ownership, the partnership between Porsche and MHP is set to continue. According to the announcement, “MHP will remain an important partner for the digitalization and transformation of various business areas” at the sports car maker, particularly in artificial intelligence. Porsche and TCS also plan to establish a separate strategic partnership focused on expanding AI applications. The goal is to accelerate the development, scaling and integration of AI systems across key areas of the business.
TCS CEO K. Krithivasan said the partnership combines “TCS’s strengths in AI, engineering, technology and business transformation with MHP’s deep automotive consulting expertise.” Together, Krithivasan added, the companies aim to “scale AI for Porsche” and advance the development of software defined mobility solutions.
(Editorial Team)
