Tata Consultancy Services has announced its acquisition of Coastal Cloud, a Salesforce consulting firm, for $700 million, enhancing its capabilities in AI-led technology services.
Tata Consultancy Services (TCS) has signed a definitive agreement to acquire a 100% stake in Coastal Cloud, a U.S.-based Salesforce Summit firm, for an all-cash consideration of $700 million. This strategic move aims to bolster TCS’s capabilities in Salesforce consulting and AI-led technology services.
Founded in 2012, Coastal Cloud specializes in multi-cloud Salesforce consulting, focusing on enterprise-scale transformations. The firm offers AI-driven advisory and business consulting services designed to help clients reimagine their Sales, Service, Marketing, Revenue, Configure Price Quote (CPQ), Commerce, and Salesforce Data Cloud operations. As a Salesforce Summit Partner, Coastal Cloud emphasizes building strong customer relationships and partnerships.
Aarthi Subramanian, Chief Operating Officer of Tata Consultancy Services, remarked, “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 realizing TCS’s vision of becoming the world’s largest AI-led Technology Services company.”
Eric Berridge, CEO of Coastal Cloud, expressed enthusiasm about the acquisition, stating, “This is an exciting new chapter for Coastal Cloud, and joining TCS enables us to serve our customers’ evolving needs with even greater depth, speed, and scale. Our team’s Salesforce and multi-cloud expertise, combined with TCS’ global reach, advanced AI capabilities, and enterprise-scale solutions, will allow us to support customers across a broader spectrum of transformation needs. Together, we can design solutions, modernize complex processes, and unlock new value across industries globally.”
Vikram Karakoti, Global Head of Enterprise Solutions at TCS, noted that Coastal Cloud’s multi-cloud capabilities complement TCS’s existing Salesforce strengths. He stated, “Together with ListEngage’s expertise, we are poised to build a world-class Salesforce practice to deliver full-stack, custom solutions globally. 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.”
Karakoti also emphasized TCS’s commitment to its existing customers, ensuring continuity, consistency, and excellence in service delivery. The acquisition is expected to enhance TCS’s global Salesforce aspirations by integrating comprehensive, multi-cloud Salesforce expertise across various industries.
Furthermore, TCS believes that this acquisition will enable the company to deliver stronger client outcomes and accelerate growth across all key global markets. The firm continues to pursue its mergers and acquisitions agenda, aligning with its core priorities in AI, Cloud, Cybersecurity, Digital Engineering, and Enterprise Solutions.
According to TCS, this acquisition reinforces its commitment to its customers in the United States, which represents the largest market for the organization globally. The deal is subject to conditions precedent and regulatory approvals.
This acquisition highlights TCS’s strategic focus on enhancing its service offerings and expanding its capabilities in the competitive technology landscape.
According to The American Bazaar, the deal is poised to significantly impact TCS’s operations and growth trajectory.