$P911 (-1.39%) MHP is selling to $TCS – a remarkable deal with surprising figures.
India’s Tata Consultancy Services $TCS is acquiring MHP in its entirety. The enterprise value stands at €320 million. At the same time, $P911 (-1.39%), $TCS and MHP have agreed to a five-year strategic partnership valued at €1.25 billion.
The figures:
• MHP revenue in 2025: approximately €742 million
• Employees: approximately 4,500
• Purchase price: €320 million
• Purchase price/revenue ratio: only about 0.43
• Strategic partnership: an average of 250 million € per year
At first glance, the purchase price alone seems surprisingly low. However, profitability, customer concentration, margin pressure, and the company’s heavy reliance on the automotive industry are likely to be decisive factors.
For Porsche, the move makes sense: a focus on its core business, a short-term inflow of funds, and, nevertheless, long-term access to expertise in digitalization, software, and AI. However, Porsche is also selling a company that plays a key role in the group’s digital transformation.
For TCS, MHP is likely to be strategically much more valuable than the purchase price suggests: access to more than 300 customers, deep automotive and SAP expertise, an established position in the German market, and expertise in AI, production, and software-defined mobility. Added to this is a partnership with Porsche worth billions.
MHP is to remain an independent consulting firm and brand. Whether this will actually create new international growth opportunities or whether MHP will be more closely integrated into the massive TCS Group in the long term remains the most intriguing question.
My initial assessment:
🟢 A strategically strong deal that is $TCS
🟡 understandable in the short term for $P911 (-1.39%)
🔴 the purchase price still seems surprisingly low
❓ opportunities arise for MHP, but so do significant changes
How do you view the sale: a logical move by Porsche—or was valuable digital expertise sold off too cheaply?
Sources: Porsche Newsroom · TCS · Reuters