Indian IT services company Tata Consultancy Services (TCS) on Monday said it would acquire Porsche’s IT division MHP for $373.25 million.
TCS announced a strategic partnership with Porsche AG to enable artificial intelligence (AI) services across the mobility value chain for the German automaker. The partnership is reinforced by a five-year strategic deal from Porsche.
As part of the deal, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche to drive innovation across manufacturing, engineering, operations and customer experience.
TCS, through its subsidiary, will acquire 100 per cent of MHP Management- und IT-Beratung GmbH (MHP), Porsche’s Germany-based management and IT consulting subsidiary.
The proposed partnership and acquisition remain subject to regulatory approvals.
MHP has automotive and industrial consulting and implementation experience, with strengths in business transformation, AI, SAP, manufacturing digitalisation and connected mobility. Its track record in delivering complex automotive and industrial transformation programmes will complement TCS’ global scale and engineering capabilities.
K. Krithivasan, CEO and Managing Director, Tata Consultancy Services, said, “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, technology and business transformation with MHP’s strong automotive consulting expertise. Together, we will industrialise AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future.”
Michael Leiters, CEO, Porsche AG, said, “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. At the same time, we are gaining a strategic partner in TCS. By combining Porsche’s automotive expertise with TCS’ 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.”