TCS Acquires Coastal Cloud for $700 Million

Mumbai, Dec 10 (PTI) Country's largest IT services firm TCS on Wednesday announced the acquisition of US-headquartered Coastal Cloud for USD 700 million.

The deal will make Tata Consultancy Services (TCS) among the top five Salesforce advisory and consulting firm globally.

It also strengthens its strategic positioning to drive AI-first, agent-driven transformation, an official statement said.

The Tata group company has signed a definitive agreement to completely acquire Coastal Cloud for an all cash consideration of USD 700 million.

"This acquisition marks a pivotal milestone in advancing our global Salesforce capabilities and accelerating our AI-led transformation agenda," Aarthi Subramanian, chief operating officer of the company, said.

The company is adding over 400 multi-cloud specialists with deep industry expertise and strengthening advisory and business consulting capabilities to enhance its AI and data offerings, she added.

"TCS enables us to serve our customers' evolving needs with even greater depth, speed, and scale," Coastal Cloud's Chief Executive Eric Berridge said.

Together, both the companies can design solutions, modernise complex processes, and unlock new value across industries globally, Berridge added.

Coastal Cloud was founded in 2012 and positions itself as a multi-cloud Salesforce consulting firm, specialising in enterprise-scale transformations, including AI-led advisory and business consulting capabilities to help customers reimagine sales, service, marketing, revenue, CPQ, commerce and salesforce data cloud.

The new acquisition comes months after TCS, which was perceived to be conservative from an inorganic growth chasing perspective, strengthened its Salesforce practice with its ListEngage acquisition.

The TCS scrip closed 0.63 per cent down at Rs 3,188.15 at the BSE as against a 0.32 per cent correction on the benchmark.