TCS will pay $700 million in cash to purchase Coastal Cloud

IT major Tata Consultancy Services (TCS) has announced that it will acquire 100% stake in Coastal Cloud for $700 million (around ₹6,286 crore) in an all-cash deal. This is TCS’s biggest acquisition so far and one of the largest deals by an Indian IT company.

Coastal Cloud is a Salesforce consulting company that provides AI-driven advisory and business consulting services. With this acquisition, TCS aims to strengthen its Salesforce capabilities and expand its presence in the mid-market customer segment.

The deal comes shortly after TCS partnered with private equity firm TPG to set up AI-ready data centres. Both companies plan to invest up to ₹18,000 crore ($2.1 billion) over the next few years in HyperVault AI Data Centre Ltd, a TCS subsidiary formed in October.

Earlier in October, TCS had also announced the acquisition of US-based ListEngage, a Salesforce-focused digital marketing and consulting firm. That deal was aimed at boosting TCS’s Salesforce practice and agentic AI capabilities.

Overall, these acquisitions show TCS’s strong focus on AI, Salesforce services, and digital transformation to drive future growth.