TCS to Acquire Coastal Cloud for $700 Million in Biggest-Ever All-Cash Deal

IT giant Tata Consultancy Services (TCS) has announced its largest acquisition to date, confirming that it will acquire a 100% stake in Coastal Cloud for an all-cash consideration of $700 million (approximately ₹6,286 crore). This also marks one of the biggest acquisition deals by any Indian IT company.

Strengthening TCS’ AI and Salesforce Capabilities

Coastal Cloud is a well-known Salesforce consulting firm that provides AI-led advisory, digital transformation, and business consulting services. Through this acquisition, TCS will significantly strengthen its presence in the Salesforce ecosystem, especially in the mid-market customer segment.

The deal will enable TCS to scale its offerings in:

• AI-powered enterprise solutions

• Customer and digital transformation

• Salesforce consulting and implementation

• Business advisory services

With Coastal Cloud’s expertise, TCS aims to accelerate growth and enhance customer engagement across industries.

Aligned With TCS’ Recent Strategic Investments

This acquisition follows TCS’ recent announcement of a major joint venture with private equity giant TPG to build AI-ready, gigawatt-scale data centres. Both companies will jointly invest up to ₹18,000 crore ($2.1 billion) in HyperVault AI Data Centre Ltd., a wholly owned TCS subsidiary established in October.

This large-scale investment underscores TCS’ focus on becoming a global leader in AI infrastructure, cloud technologies, and high-performance computing.

Comes Soon After TCS Acquired ListEngage

Before the Coastal Cloud announcement, TCS had also revealed its acquisition of ListEngage during its Q2 earnings call in October.
ListEngage is a Salesforce-exclusive digital marketing and consulting partner, known for helping businesses optimize customer engagement using Salesforce technologies.

With both ListEngage and Coastal Cloud under its umbrella, TCS is now positioned to:

• Expand its Salesforce capabilities

• Strengthen agentic AI solutions

• Deepen expertise in digital customer experience

• Become a leading global Salesforce transformation partner

Impact of the Coastal Cloud Deal on TCS’ Growth

The acquisition offers several strategic advantages to TCS, including:

• Stronger leadership in the Salesforce consulting market

• Enhanced AI-driven business transformation services

• Expansion in the US mid-market segment

• Improved digital advisory and customer experience capabilities

• Greater competitiveness in global consulting

Conclusion

TCS’ $700 million acquisition of Coastal Cloud marks a major milestone for the Indian IT sector. Combined with its investment in AI-ready data centres and the acquisition of ListEngage, TCS is clearly focused on strengthening its position in AI, Cloud, Salesforce, and Digital Transformation solutions globally.

These strategic moves are expected to significantly enhance TCS’ capabilities and cement its leadership in the rapidly evolving technology landscape.

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