TCS Acquires Coastal Cloud for $700M - Biggest Deal Yet
TCS buys Coastal Cloud, based in the US, for $700M and is now a top 5 Salesforce partner. Deal incorporates over 400 employees and enhances AI-first leadership at TCS
TCS Acquires Coastal Cloud for the tune of 700 Million.
Tata Consultancy Services (TCS) has declared its intention to purchase Salesforce consulting firm Coastal Cloud, which is located in the U.S., for 700 million dollars in cash.
The acquisition involves 100 per cent of the equity of Coastal Cloud and is the biggest buyout in the history of TCS, which previously had a high record buyout in 2008 of 505 million dollars.
The relocation immediately makes TCS one of the top five advisory firms of Salesforce in the world.
Coastal Cloud was established in the year 2012, bringing with it expertise in the Sales, Service, Marketing, Commerce and Data Clouds platforms.
And TCS claimed that the buy will boost its AI and Salesforce consulting business because it aims to grow digital and cloud computing services globally. TCS observed that the takeover supports its dedication to its American customers, who are the top market of the company.
Price and Scope of Acquisition: TCS would make a full stake purchase of Coastal Cloud for $700 million (approximately 6,286 crore).
This is the biggest acquisition that TCS has had in its lifetime, as it surpasses its previous mark of $505 million.
Salesforce & AI Focus: Coastal Cloud is one of the Salesforce Summit Partners that boasts approximately 400 employees and has an approximate revenue of 132 million in 2024.
It is a company that focuses on multi-cloud Salesforce transformations and AI-driven business consulting.
Supplementing TCS AI-first services.
Developing Salesforce Leadership: In October 2025, TCS purchased a U.S. Salesforce company, ListEngage, at the price of $73 million.
These deals, combined with Coastal Cloud, bring more than 800 certified cloud specialists to TCS. TCS declared that it will now be in the top five Salesforce advisory and consulting firms in the world.
Parallel AI/Data Centres JV: The acquisition is a continuation of the November 2025 announcement of TCS's space of joint venture known as HyperVault with TPG, the private equity firm, to develop gigawatt-scale and AI-ready data centres. According to this plan, TCS and TPG will invest up to 18,000 crore (approximately 2.1 billion) in equity.
TPG, in its turn, will put in ₹8,820 crore (around 1 billion dollars) in HyperVault up to a 27.5-49 per cent ownership.
The acquisition enhances the presence of Salesforce within the TCS ecosystem and has an AI-focused approach. According to TCS, the multi-cloud offerings of Coastal Cloud will be a very strong complement to the current Salesforce capabilities.
According to TCS Chief Operating Officer Aarthi Subramanian, the deal was a milestone towards enhancing our global Salesforce offering and increasing the pace of our AI-led transformation agenda.
TCS claimed that the acquisition would give the company a global Salesforce practice that would be considerably powerful through the integration of a multi-cloud Salesforce experience.
Florida-based Coastal Cloud provides experience in artificial intelligence-driven consulting on the principal Salesforce clouds.
And it has former Salesforce executives in its leadership team, the CEO being Eric Berridge.
To give a rough estimate, Coastal Cloud earned approximately 132 million in revenue in 2024.
Indicating a high level of demand for its services. According to Coastal Cloud CEO Eric Berride, becoming a member of TCS will help the company to serve customers on an even deeper, faster, and larger scale.
Coastal Cloud has been receiving confidence in its platform as Salesforce Ventures has been a strategic investor in the company. TCS claimed that the acquisition has more than 400 cloud practitioners (3,000+ certifications) in its Salesforce and AI practice.
And gains entry with Coastal Cloud into the mid-market of the customer base, such that it provides synergies with the existing customers of TCS.
TCS is betting big on AI infrastructure beyond Salesforce. TCS and TPG will build data centres, optimally liquid-cooled, and purposefully designed to support massive AI workloads through HyperVault.
TCS Chairman N. Chandrasekaran indicated that the JV would enable the company to reinforce its partnership with hyperscalers and AI businesses as well as make TCS the biggest AI-driven technology services company in the world.
TCS had previously indicated that it was planning a 1 gigawatt data centre capacity within 6 years to the tune of 6.5 billion.
Emphasising the change of the company to next-generation services.
These actions highlight that TCS targets high-growth fields such as AI and cloud. The company added that it would keep making acquisitions in line with its main priorities in AI, cloud, cybersecurity and digital engineering.
TCS reported that it had created more than 5.1 billion of free cash flow in FY2025.
The emphasis is on its capacity to finance this acquisition internally. The deal of the Coastal Cloud is set to be closed at the beginning of January 2026 under the usual regulatory approvals.
TCS indicated that it is also dedicated to its current customers and would not cut off its services in the process of this expansion.
Sources: official TCS press releases and media.
What's Your Reaction?
Like
1
Dislike
0
Love
0
Funny
0
Angry
0
Sad
0
Wow
0
