Tata Consultancy Services, on December 10, announced that it will be acquiring AI services and advisory firm Coastal Cloud in an all-cash deal of $700 million. The transaction is expected to be completed by January 31, 2026
“Coastal Cloud has an enterprise value of up to $700 million, including upfront and deferred payments excluding any customary post-closing adjustments for net debt & working capital,” TCS said in stock exchange filings.
Coastal Cloud Holdings is a Salesforce summit partner and Salesforce Ventures portfolio company- offering consulting, implementation and managed services across multiple Salesforce clouds such as Service Cloud, Sales Cloud, Marketing Cloud, Revenue & CPQ Cloud, Commerce Cloud, etc.
The firm also has strong data and AI expertise, offering implementation and integration of Agentforce, Salesforce Data Cloud, Snowflake, Mulesoft and Tableau.
Consolidated turnover of the company stood at $132 million forthe financial year ending December 2024 and $141 million for Last Twelve Months (LTM) till September 2025. The company has nearly 400 Salesforce-skilled professionals.
TCS, through ListEngage MidCo, LLC (“ListEngage”), a wholly owned subsidiary of the Company in USA, will acquire Coastal Cloud.
This will be the IT services giant's second acquisition in less than three months. In October, TCS said it was acquiring US-based ListEngage MidCo for $72.8 million, along with its subsidiary of ListEngage LLC, which provides digital marketing services through Salesforce platforms like Marketing Cloud, Data Cloud and Agentforce and AI advisory services.
With the acquisitions of ListEngage and Coastal Cloud, TCS will be among top 5 Salesforce advisory and consulting firm, globally, the company said.
Why is TCS acquiring Coastal Cloud?
Founded in December 2012, this Florida headquartered company is one of the largest pure-play Salesforce partners with strong advisory capabilities, multi-cloud offerings and AI/Agentforce expertise. It has strong growth and profitability profile, deep partnership with Salesforce (including presence on Salesforce Partner Advisory Boards), experienced leadership team and nearly 400 Salesforce certified personnel based in the US.
Coastal Cloud also has over 400 customers and a strong presence in the mid-market segment, giving TCS a boost in this segment while also helping it expand local workforce amid ongoing H-1B visa uncertainties.
What TCS leaders said
Aarthi Subramanian, Chief Operating Officer, Tata Consultancy Services, said, “This acquisition marks a pivotal milestone in advancing our global Salesforce capabilities and accelerating our AI-led transformation agenda. It is another significant step towards realizing TCS’s vision of becoming world’s largest AI-led Technology Services company."
"We are delighted to welcome the Coastal Cloud team to TCS family. Eric, together with Altaf Shaikh from ListEngage will strengthen our leadership in propelling the next phase of growth for our Salesforce practice," she added.
Eric Berridge, CEO, Coastal Cloud, said, “This is an exciting new chapter for Coastal Cloud, and joining TCS enables us to serve our customers’ evolving needs with even greater depth, speed, and scale. Our team’s Salesforce and multi-cloud expertise, combined with TCS’ global reach, advanced AI capabilities and enterprise scale solutions, will allow us to support customers across a broader spectrum of transformation needs."
During TCS' Q2 earnings conference in October, the company's management laid down its roadmap to expand AI services and infrastructure through strategic investments in acquisitions and setting up 1 GW of data center capacity.
Following, Coastal Cloud acquisition, TCS said it will "continue to pursue the M&A agenda aligned with its core priorities in AI, Cloud, Cybersecurity, Digital Engineering and Enterprise Solutions."
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
