Tata Consultancy Services is buying U.S.-based Salesforce Summit Partner Coastal Cloud for $700 million to boost its global presence and AI business.
Solution provider powerhouse Tata Consultancy Services (TCS) is acquiring Coastal Cloud, a top Salesforce consulting partner, for $700 million in a move to boost its AI business, U.S. customer base and Salesforce prowess.
The news of the all-cash deal comes just two months after the $30 billion India-based IT services juggernaut acquired ListEngage, a U.S.-based Salesforce partner.
“Coastal Cloud’s multi-cloud capabilities strongly complement TCS’ existing Salesforce strength—and together with ListEngage’s expertise—we are poised to build a world-class Salesforce practice to deliver full-stack, custom solutions globally,” said TCS’ Vikram Karakoti, global head of enterprise solutions, in a statement.
He said the two acquisitions significantly expand TCS’ “geographic presence, deepen our sector capabilities, and significantly strengthen our talent pool.”
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With the acquisitions of ListEngage and Coastal Cloud, TCS said it will be “among top five Salesforce advisory and consulting firm, globally.”
TCS Gains 400 Cloud Professionals
TCS signed a definitive agreement to acquire a 100 percent stake in Palm Coast, Fla.-based Coastal Cloud this week with the deal expected to close in 2026.
Founded in 2012, Coastal Cloud is a Salesforce Summit Partner and consulting specialist focused on enterprise transformations.
Coastal is led by former Salesforce executives, including current CEO Eric Berridge.
TCS said buying Coastal Cloud will strengthen its Salesforce advisory and business consulting business globally via Coastal’s 400 cloud professionals who have more than 3,000 multi-cloud certifications.
“By adding over 400 cloud specialists with deep industry expertise to TCS bench, we are strengthening our advisory and business consulting capabilities and enhancing our AI and data offerings,” said Aarthi Subramanian, TCS’ chief operating officer, in a statement.
Coastal focuses on AI-led advisory and business consulting services. The company is also a Snowflake Premier Partner.
TCS said it will benefit from getting access to Coastal Cloud’s enterprise and mid-market customers. The company did not respond for comment on the deal by press time.
TCS ‘Will Continue To Pursue’ Other Acquisitions
The company said the acquisitions of American firms Coastal Cloud and ListEngage reinforces TCS’ commitment to its U.S.-based customers, with no plans to stop eyeing potential firms to buy.
“TCS will continue to pursue the M&A agenda aligned with its core priorities in AI, Cloud, Cybersecurity, Digital Engineering and Enterprise Solutions,” the company said in a release.
