MHP sells remaining stake to Porsche to fund next growth chapter

29 July 2023 2 min. read

German business and IT consultancy MHP has roped in an investment from parent Porsche, with the aim to free up funds to invest in further growth.

Established in 1996, MHP initially began life as an IT consultancy focused on SAP services. Over the past 25+ years, the Ludwigsburg-headquartered company has broadened its services to become a full-service process and IT consulting firm. With over 4,000 staff in 16 offices, MHP is now Germany’s ninth-largest IT consultancy (according to data from researcher Lünendonk).

Iconic car brand Porsche has been part of the growth journey from the early days. In 1999, Porsche took a 49% stake in the company, upping its share into a majority three years later. Subsequent investments in 2003 and 2011 lifted Porsche’s stake to the current 82%.

MHP sells remaining stake to Porsche to fund next growth chapter

Announced yesterday, MHP has confirmed that its parent will acquire the remaining 18% of share in the coming six-month period. “By the start of 2024, MHP will be 100% owned by Porsche,” said Ralf Hofmann, co-founder, shareholder and chairman of MHP.

Hofmann said that the sale will unlock funds that will be re-invested into the firm as it embarks on its next chapter of growth. “Our Strategy 2030 has set ambitious goals. In order to achieve these, the transfer of shares to Porsche is a necessary step,” said Hofmann.

Funds will be channelled into a number of directions. MHP wants to invest in new offerings, and expand its line of solutions and software as a service (SaaS) products.

Hofmann stated: “The market for IT services is still on a growth trajectory with high demand around topics such as cloud transformation and software development. With our new cloud solutions business area, we now offer our customers cloud-based products for their digital transformation in addition to our heritage consulting expertise.”

MHP also aims to expand its geographic presence: 14 of its current 16 offices are based in Europe. In fact, over 90% of the company’s revenue is currently generated in its home market of Germany. In the coming years, more offices are eyed in other European countries, as well as North America and Asia alongside the existing hubs in Atlanta and Shanghai.

Hinting at the potential of inorganic growth to accelerate progress towards its 2030 goals, Porsche’s deputy chairman Lutz Meschke said: “We are also open to acquisitions.”

“We are driven by the aspiration to make technology a tool for change towards a better tomorrow. We want to play an even bigger role – as a company and as part of society”, Hofmann concluded.