TCS to Acquire Coastal Cloud for $700 Million
Tata Consultancy Services (TCS) has announced that it will acquire Coastal Cloud, a US-based Salesforce consulting and cloud services firm, in an all-cash $700 million deal. This marks TCS’s biggest acquisition since its 2004 IPO. The transaction is expected to close by January 31, 2026, subject to regulatory approvals in the United States.
What Coastal Cloud Brings to TCS
Coastal Cloud, founded in 2012 and headquartered in Florida, specialises in multi-cloud Salesforce services, including Sales Cloud, Service Cloud, Marketing Cloud, Revenue & CPQ, Commerce Cloud and Data Cloud solutions. The company employs nearly 400 Salesforce-skilled professionals and serves a diverse set of industries with advisory, implementation and managed services.
Strategic Fit for TCS
TCS said the acquisition will significantly strengthen its Salesforce consulting and delivery capabilities, especially in the US market. With Coastal Cloud’s addition, TCS expects to rank among the top five Salesforce consulting partners globally. This follows TCS’s earlier acquisition of ListEngage MidCo in October 2025, further deepening its Salesforce expertise.
Focus on Cloud, AI and Digital Transformation
TCS plans to integrate Coastal Cloud’s capabilities into its broader offerings in cloud transformation, AI-driven digital solutions and industry-specific platforms. Company executives said the combined strengths will help accelerate client transformation journeys and expand TCS’s reach in the mid-market segment.
Industry View and Market Impact
Analysts see the deal as a strategic move to tap into growing demand for cloud-based enterprise solutions and Salesforce-driven digital transformation. The acquisition also reflects consolidation trends across global IT services as companies scale up specialised cloud and AI capabilities.
