Porsche signs $1.5 billion AI pact, sells MHP to Tata Consultancy
What's new: TCS will also buy Porsche's MHP unit for 320 million euros, expanding the Indian firm's reach in Germany and Europe.
Porsche signed a five-year artificial intelligence partnership worth 1.25 billion euros, or about $1.5 billion, with Tata Consultancy Services and agreed to sell its consulting subsidiary MHP in the same transaction. TCS said it will deploy AI across Porsche's engineering, manufacturing, operations and customer experience functions. The Indian IT services company will acquire Germany-based MHP Management- und IT-Beratung GmbH for an enterprise value of 320 million euros, with the deal expected to close in three to four months pending regulatory approval. Porsche is selling MHP as it narrows its focus to its core automotive business, while TCS gains a larger foothold in Germany and among European industrial clients.