TCS to acquire AI services firm Coastal Cloud for $700M
What's the story
Tata Consultancy Services (TCS) has announced its plan to acquire Coastal Cloud, a Salesforce consulting and advisory firm with strong AI expertise. The deal, which is worth $700 million, will be paid in cash. The acquisition is expected to be finalized by January 31, 2026. Coastal Cloud Holdings is a Salesforce summit partner and Salesforce Ventures portfolio company that provides consulting and managed services across various Salesforce clouds.
Company profile
Expertise and financial performance
Coastal Cloud has a strong data and AI expertise, providing implementation and integration of Agentforce, Salesforce Data Cloud, Snowflake, Mulesoft, and Tableau. The company's consolidated turnover was $132 million for the fiscal year ending December 2024 and $141 million for the last 12 months (LTM) until September 2025. The firm employs nearly 400 Salesforce-skilled professionals.
Growth strategy
TCS's acquisition strategy and future plans
TCS, through its wholly-owned US subsidiary ListEngage MidCo, will acquire Coastal Cloud. This is the IT services giant's second acquisition in less than three months. In October 2025, TCS had announced its plan to acquire US-based ListEngage MidCo for $72.8 million. The move is part of TCS's strategy to expand its Salesforce advisory and consulting business globally.
Market impact
Coastal Cloud's market presence and customer base
Founded in December 2012, Coastal Cloud is one of the largest pure-play Salesforce partners with strong advisory capabilities. The company has over 400 customers and a strong presence in the mid-market segment. This acquisition will strengthen TCS's position in this segment while also helping it expand its local workforce amid ongoing H-1B visa uncertainties.
Leadership remarks
TCS's leaders comment on the acquisition
TCS COO Aarthi Subramanian said this acquisition is a major milestone in strengthening their global Salesforce capabilities and accelerating their AI-led transformation agenda. Coastal Cloud CEO Eric Berridge also expressed excitement about the acquisition, saying it would enable them to serve their customers' evolving needs with greater depth, speed, and scale.