Key Highlights
- TCS to acquire Coastal Cloud for an enterprise value of up to USD 700 million.
- Acquisition to be executed through TCS subsidiary ListEngage in the US.
- Coastal Cloud reported USD 141 million LTM revenue till September 2025.
- Deal adds 400+ Salesforce specialists and strengthens multi-cloud and AI capabilities.
- TCS to enter top 5 global Salesforce advisory and consulting firms post-acquisition.
- Closing targeted by January 31, 2026 subject to regulatory approvals.
Tata Consultancy Services (TCS) has announced the acquisition of Coastal Cloud Holdings LLC and its subsidiaries, marking a strategic expansion of its Salesforce and AI-led consulting capabilities. The company’s Board has approved the execution of a Securities Purchase Agreement and Plan of Merger to complete the transaction.
Deal Valued Up to USD 700 Million
The acquisition carries an enterprise value of up to USD 700 million, including upfront and deferred components. TCS will execute the deal through its US-based subsidiary, ListEngage MidCo LLC, which will also incorporate two new subsidiaries to facilitate the process.
Strengthening Multi-Cloud and AI Capabilities
Coastal Cloud is a Salesforce Summit Partner offering multi-cloud consulting expertise across Service Cloud, Sales Cloud, Marketing Cloud, Revenue & CPQ Cloud, Commerce Cloud and Data Cloud. The company employs over 400 Salesforce-certified professionals and reported USD 141 million in revenue for the last twelve months ending September 2025.
Entry Into the US Mid-Market Segment
The acquisition positions TCS to expand its presence in the US mid-market space where Coastal Cloud has a strong customer base. Combined with its earlier acquisition of ListEngage, TCS will advance into the top five Salesforce advisory and consulting firms globally, increasing its capabilities in advisory, transformation and AI-driven services.
Approvals and Completion Timeline
Completion of the deal is subject to Hart-Scott-Rodino antitrust approval in the United States. TCS expects to close the transaction by January 31, 2026, pending fulfilment of all regulatory and closing conditions.
Leadership Commentary
TCS leadership stated that the acquisition will bolster the company’s AI-first transformation goals and enhance its Salesforce consulting depth. Coastal Cloud leadership noted that joining TCS provides expanded scale, innovation capabilities and stronger growth opportunities for both employees and clients.