TCS to buy Coastal Cloud for $700mn

/ 1 min read
Summary

In its biggest ever acquisition till date, the IT major is acquiring the US consulting firm to deepen its Salesforce practice.

The acquisition will help TCS bolster its AI-led advisory and business consulting capabilities
The acquisition will help TCS bolster its AI-led advisory and business consulting capabilities | Credits: Sanjay Rawat

India’s largest IT services and consulting firm, Tata Consultancy Services, has announced that it will be acquiring 100% stake in Florida based Salesforce consulting firm Costal Cloud.   

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While notably the statement excluded any comments from CEO and MD K Krithivasan, the company’s Chief Operating Officer, Aarthi Subramanian’s prepared remarks said, “It is another significant step towards realizing TCS’s vision of becoming world’s largest AI-led Technology Services company. By adding over 400 multi-cloud specialists with deep industry expertise, we are strengthening our advisory and business consulting capabilities and enhancing our AI and data offerings”. 

The transaction is expected to be completed by the end of January, 2026. 

Coastal Cloud, which is a Salesforce practice company with a deep partnership with Salesforce (including presence on Salesforce Partner Advisory on its board) has over 400 Salesforce certified personnel based in the US and over 400 clients including a strong presence in the mid-market segment, which now TCS can access.  

Coastal Cloud had a consolidated turnover of $132 million at the end of December for FY 2024 and $141mn in the last twelve months (till September 2025).

The transaction is structured in a manner where ListEngage would be acquiring the firm and simultaneously incorporate two wholly-owned subsidiaries in the USA. 

Vikram Karakoti, Global Head, Enterprise Solutions, Tata Consultancy Services, said, “These two acquisitions expand our geographic presence, deepen our sector capabilities, and significantly strengthen our talent pool, giving us confidence to meet our aspirations and support clients’ agendas in a rapidly evolving technology landscape”.  

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While TCS sees this acquisition helping in a rapid expansion of its customer base, the company also said that it will continue its hunt for acquisitions of companies, especially around AI, Cloud, Cybersecurity, Digital Engineering and Enterprise Solutions.  

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