TCS to buy Porsche’s IT unit, bags five-year deal worth $1.4 billion

TCS MHP acquisition: India’s largest IT services provider, Tata Consultancy Services (TCS), signed a five-year deal with Porsche AG valued at €1.25 billion ($1.45 billion) and acquired the German automaker’s IT arm, MHP, for €320 million ($373.4 million) in an all-cash transaction. The two deals are independent of each other.

The scale of opportunity is the primary motivation, TCS chief executive K Krithivasan told ET.

“Currently, MHP operates only in Europe, and now we are able to operate at a global scale with this combined entity,” he said. “Porsche will be our customer zero, but our centre will bring solutions to all other automobile customers, expanding the scale and scope of what we can do together.”