Tata Consultancy Services (TCS) announced its largest acquisition ever this week, agreeing to buy U.S.-based Salesforce consulting firm Coastal Cloud for $700 million in an all-cash deal. This major move aims to significantly strengthen TCS's global Salesforce capabilities and accelerate its strategy for AI-led transformation. The transaction is expected to close by January 31, 2026.^[1][2][3][4] ### Coastal Cloud's Salesforce Expertise Coastal Cloud, founded in 2012 by Eric Berridge, specializes in Salesforce consulting. It is recognized as a Salesforce Summit Partner, a high-tier designation within the Salesforce ecosystem. The firm focuses on enterprise-scale transformations and provides AI-led advisory and business consulting services. Coastal Cloud helps companies improve various business functions, including Sales, Service, Marketing, Revenue, CPQ (Configure, Price, Quote), Commerce, and Salesforce Data Cloud.^{[1][5][6][7][8]} The U.S.-based company had 400 employees at the end of September 2025.^[2][3] In 2024, Coastal Cloud reported revenues of $132 million. Its revenue for the 12 months ending September 2025 reached $141 million.^[9][7] Salesforce Ventures, the corporate venture arm of Salesforce, and Sverica Capital Management have also invested in Coastal Cloud.^[10] ### Driving AI-Led Transformation TCS views this acquisition as a pivotal step in its journey to become the world's largest AI-led technology services company. The deal brings over 400 seasoned professionals from Coastal Cloud, who hold more than 3,000 multi-cloud certifications. This talent pool will enhance TCS's advisory and business consulting capabilities, especially in artificial intelligence and data offerings.^{[1][11][5][7][12]} Aarthi Subramanian, Chief Operating Officer at Tata Consultancy Services, highlighted the strategic importance. "This acquisition marks a pivotal milestone in advancing our global Salesforce capabilities and accelerating our AI-led transformation agenda," Subramanian said.^[1][2][5] She added that it is a significant step toward realizing TCS's vision.^[1][2] The acquisition also provides TCS with access to the mid-market customer segment, creating new synergies with its existing client base.^[1][4][12] ### Expanding Salesforce Presence This acquisition follows another strategic move by TCS in October 2025, when it acquired ListEngage, another Salesforce Summit Partner, for $72.8 million.^[1][3][4] With the additions of both ListEngage and Coastal Cloud, TCS expects to rank among the top five Salesforce advisory and consulting firms globally.^{[1][3][11][7]} These acquisitions are part of TCS's broader strategy to consolidate its Salesforce practice and offer comprehensive multi-cloud Salesforce expertise across various industries worldwide.^[1][3][7] TCS's acquisition approach is selective and strategic, focusing on gaining intellectual property, filling portfolio gaps, and expanding its market reach.^[13] The company often looks for opportunities to acquire firms that excel in emerging technologies, such as AI and cloud services.^[13] This strategy helps TCS complement its organic growth and drive innovation in the evolving technology landscape.^[13] ### Financial Strength and Future Outlook The $700 million acquisition marks TCS's largest buyout since it went public in 2004. Its previous largest acquisition was Citigroup Global Services Ltd in 2008 for $505 million.^[2] TCS has ample financial resources for this deal, having generated over $5.1 billion in free cash flow from its operations last year.^[2] This investment also follows TCS's recent commitment to invest $6.5 billion over six years to build 1 gigawatt of data center capacity.^[2][4] Eric Berridge, CEO of Coastal Cloud, expressed enthusiasm about the new chapter. "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," Berridge said.^[3][5] The combined entity is now better equipped to deliver stronger client outcomes and accelerate growth across key global markets.^[3] TCS plans to continue its M&A strategy in core areas like AI, cloud, cybersecurity, digital engineering, and enterprise solutions.^[3]

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