TCS to Acquire US AI Firm Coastal Cloud for $700 Million; Deal Expected by Jan 2026

TCS has announced it will acquire US AI advisory firm Coastal Cloud for $700 million (₹6,292 crore), expected to close by 31 January 2026. The deal strengthens TCS’s Salesforce, cloud, and AI capabilities globally.

TCS to Acquire US AI Firm Coastal Cloud for ₹6,292 Crore; Here’s All You Need to Know

Tata Consultancy Services (TCS), the IT giant under the Tata Group, announced on 10 December that it will acquire AI services and advisory firm Coastal Cloud. The deal will be an all-cash transaction worth $700 million (approx ₹6,292 crore) and is expected to close by 31 January 2026.

TCS revealed in a stock exchange filing that the enterprise value of Coastal Cloud, including upfront and deferred payments, totals $700 million, excluding standard post-closing adjustments related to net debt and working capital. The acquisition will be executed through TCS’s wholly-owned US subsidiary, ListEngage MidCo LLC.

Strong Presence in the Salesforce Ecosystem

Coastal Cloud Holdings is a Salesforce Summit Partner and a portfolio company of Salesforce Ventures. The firm provides consulting, implementation, and managed services across multiple Salesforce cloud platforms, including Service Cloud, Sales Cloud, Marketing Cloud, Revenue & CPQ Cloud, and Commerce Cloud.

Expertise in Data and AI

Coastal Cloud has strong capabilities in data and AI. The company implements and integrates platforms such as Agentforce, Salesforce Data Cloud, Snowflake, Mulesoft, and Tableau, delivering end-to-end solutions for enterprise clients.

Financial Profile of Coastal Cloud

Coastal Cloud reported a consolidated turnover of $132 million for the fiscal year ending December 2024, which increased to $141 million in the last 12 months (LTM) ending September 2025. The company employs approximately 400 Salesforce-skilled professionals.

Second Acquisition in Three Months

This is TCS’s second acquisition in less than three months. In October, TCS acquired ListEngage MidCo and its subsidiary ListEngage LLC for $72.8 million. ListEngage provides digital marketing and AI advisory services using Salesforce platforms such as Marketing Cloud, Data Cloud, and Agentforce.

Why TCS is Acquiring Coastal Cloud

Founded in December 2012 and headquartered in Florida, Coastal Cloud is one of the largest pure-play Salesforce partners. The company brings strong advisory capabilities, multi-cloud offerings, and deep expertise in AI and Agentforce. Its partnership with Salesforce is well-established, and it has previously been part of Salesforce Partner Advisory Boards.

Focus on Mid-Market and Local Workforce

Coastal Cloud serves over 400 clients, with a strong foothold in the mid-market segment. The acquisition will help TCS expand in this segment quickly and strengthen its local talent base in the US, mitigating uncertainties around H-1B visas. TCS expects that post the acquisitions of ListEngage and Coastal Cloud, it will become one of the top 5 global Salesforce advisory and consulting firms.

TCS Leadership Comments

Aarthi Subramanian, Chief Operating Officer of TCS, said the acquisition will enhance the company’s global Salesforce capabilities and accelerate AI-driven transformations. She described it as a key step towards becoming the world’s largest AI-based technology services company.

Coastal Cloud’s Perspective

Eric Berridge, CEO of Coastal Cloud, said joining TCS marks a new and significant chapter. He added that combining Coastal Cloud’s expertise in Salesforce and multi-cloud with TCS’s global reach and advanced AI capabilities will enable faster and more comprehensive transformation support for clients.

Future Acquisition Plans

TCS stated that it will continue to seek mergers and acquisitions post the Coastal Cloud deal, focusing on AI, cloud, cybersecurity, digital engineering, and enterprise solutions. In its Q2 earnings call in October, TCS management mentioned ongoing efforts to strengthen AI services and infrastructure through strategic acquisitions and developing 1 GW of data center capacity.

TCS Stock Performance

TCS shares closed at ₹3,185, down 0.73% on Wednesday. In the past month, the stock rose 5.28%, but over the last 6 months and 1 year, it has declined 8.03% and 28.15%, respectively. The company’s market capitalization stands at ₹11.54 lakh crore.