8 months ago
TCS Acquires Coastal Cloud for $700M
Tata Consultancy Services (TCS) is buying Coastal Cloud, a company that helps businesses use Salesforce, for $700 million.
This is TCS's biggest buyout since it became a public company.
Coastal Cloud has about 400 employees and made $132 million in revenue last year.
TCS plans to finish the deal by the end of January next year.
This purchase will help TCS become one of the top five Salesforce advisory firms in the world.
TCS is also investing a lot in data centers and has recently bought another company called ListEngage.
The CEO of TCS didn't make a statement about this deal, but the Chief Operating Officer said it's a big step for TCS's plans to use more artificial intelligence.
TCS is acquiring Coastal Cloud, a Salesforce partner, for $700 million in cash.
The acquisition is expected to close by 31 January 2026.
Coastal Cloud has 400 employees and generated $132 million in revenue in 2024.
TCS aims to become one of the top five Salesforce advisory firms globally with this acquisition.
TCS recently acquired ListEngage MidCo for $73 million, strengthening its Salesforce practice.
- Who
- Tata Consultancy Services (TCS) and Coastal Cloud
- What
- TCS acquiring 100% stake in Coastal Cloud for $700 million
- Where
- Coastal Cloud is based in the US
- When
- Expected to close by 31 January 2026
- Why
- To advance TCS's global Salesforce capabilities and AI-led transformation agenda
Key facts
- Acquisition Amount
- $700 million in cash
- Acquisition Date
- Expected to close by 31 January 2026
- Coastal Cloud Revenue
- $132 million in 2024
- Coastal Cloud Employees
- 400 employees as of September 2025
- TCS Revenue
- $30.2 billion
- TCS Free Cash Flow
- Over $5.1 billion in 2024
- TCS Previous Largest Acquisition
- Citigroup Global Services Ltd for $505 million in 2008
- TCS Recent Acquisition
- ListEngage MidCo for $73 million in October 2025
Quotes
Aarthi Subramanian
Chief Operating Officer of Tata Consultancy Services (TCS)
“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 realising TCS’s vision of becoming the world’s largest AI-led technology services company.”
livemint.com
“[Eric Berridge, CEO, Coastal Cloud], together with Altaf Shaikh from ListEngage will strengthen our leadership in propelling the next phase of growth for our Salesforce practice.”
thehindubusinessline.com
Tata Consultancy Services (TCS)
A leading global IT services and consulting company
“Coastal Cloud 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 and nearly 400 Salesforce certified personnel based in the US. Coastal Cloud has 400+ strong client roster including a strong presence in the mid-market segment”
thehindubusinessline.com
Vikram Karakoti
Global Head, Enterprise Solutions, Tata Consultancy Services (TCS)
“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.”
thehindubusinessline.com
