Porsche Signs €1.25 Billion TCS AI Deal, Sells MHP for €320 Million
Updated
Updated · CNBC · Aug 25
Porsche Signs €1.25 Billion TCS AI Deal, Sells MHP for €320 Million
3 articles · Updated · CNBC · Aug 25
Summary
A five-year €1.25 billion agreement will pair Porsche’s automotive know-how with Tata Consultancy Services’ digital and AI capabilities, with the deal taking effect after TCS completes its MHP acquisition.
MHP—Porsche’s IT consulting arm with about 4,500 employees—will be sold to TCS for €320 million, helping the Indian firm expand in Germany and with European automotive and industrial clients.
Porsche said the partnership should lift innovation, efficiency and competitiveness while supporting its “Sportwagenschmiede 35” plan to improve profitability and cash flow by refocusing on its core business.
For TCS, the win adds to a run of AI-led transformation contracts; it said annualized AI revenue reached $2.6 billion in the June quarter, up 13.6% from the prior quarter.
The deal stands out against investor anxiety over AI’s impact on Indian IT services, with the Nifty IT index down nearly 20% this year versus a little over 7% for the Nifty 50.