IT major Tata Consultancy Services (TCS) has announced that it will acquire a 100% stake in Coastal Cloud for an all-cash consideration of $700 million (nearly Rs 6,286 crore).
This marks the largest acquisition by the software exporter to date and one of the largest by an Indian IT firm.
The news comes a few weeks after TCS joined forces with private equity group TPG in a multi-billion dollar joint venture to create gigawatt-scale, AI-ready data centres. Both partners agreed to cumulatively invest up to Rs 18,000 crore ($2.1 billion) as equity in HyperVault AI Data Centre Ltd — incorporated as a wholly owned subsidiary of the technology company late in October — over the next few years.
The deal with Coastal Cloud, which is a Salesforce consulting firm that offers artificial intelligence (AI)-led advisory and business consulting services, further expands TCS’ capabilities.
The acquisition will drive TCS’ growth in the mid-market customer segment. In October, TCS announced its acquisition of US-based ListEngage during its second-quarter earnings call. The strategic investment was aimed at enhancing TCS’ Salesforce practice and boosting its agentic AI capabilities.
ListEngage is a Salesforce-exclusive digital marketing agency and consulting partner, specialising in helping businesses optimise and transform their customer engagement using Salesforce.
Source Name : Economic Times