On December 10, Tata Consultancy Services said that it will purchase Coastal Cloud, an advising and AI services company, for $700 million in cash. The anticipated completion date of the deal is January 31, 2026.
$700M Salesforce Services Deal
According to TCS’s stock market filings, “Coastal Cloud has an enterprise value of up to $700 million, including upfront and deferred payments excluding any typical post-closing adjustments for net debt & working capital.”
Offering consultancy, implementation, and managed services across several Salesforce clouds, including Service Cloud, Sales Cloud, Marketing Cloud, Revenue & CPQ Cloud, Commerce Cloud, etc., Coastal Cloud Holdings is a Salesforce Ventures portfolio company and a Salesforce summit partner.
Additionally, the company offers installation and integration of Agentforce, Salesforce Data Cloud, Snowflake, Mulesoft, and Tableau, demonstrating its excellent data and AI capabilities.
TCS Expands Salesforce Dominance
For the fiscal year ending in December 2024, the company’s consolidated turnover was $132 million; for the Last Twelve Months (LTM) to September 2025, it was $141 million. Nearly 400 experts with Salesforce skills work for the organization.
TCS will buy Coastal Cloud through ListEngage MidCo, LLC (“ListEngage”), a fully owned subsidiary of the company in the United States.
In less than three months, this will be the IT services behemoth’s second purchase. TCS said in October that it will pay $72.8 million to acquire US-based ListEngage MidCo and its subsidiary, ListEngage LLC, which offers AI consulting services and digital marketing services via Salesforce platforms including Marketing Cloud, Data Cloud, and Agentforce.
According to the business, TCS will rank among the top 5 Salesforce advice and consulting firms worldwide following the acquisitions of ListEngage and Coastal Cloud.
TCS is purchasing Coastal Cloud; why?
One of the biggest pure-play Salesforce partners, this Florida-based business was founded in December 2012 and has excellent consultancy skills, multi-cloud options, and AI/Agentforce expertise. It boasts a solid growth and profitability profile, a close relationship with Salesforce (including membership on Salesforce Partner Advisory Boards), a seasoned leadership team, and about 400 US-based Salesforce certified employees.
With more than 400 clients and a significant presence in the mid-market sector, Coastal Cloud helps TCS grow its local workforce in the face of continuous H-1B visa uncertainty.
TCS executives’ statements
“This purchase marks a significant milestone in strengthening our worldwide Salesforce capabilities and driving our AI-led transformation strategy,” stated Aarthi Subramanian, CEO of Tata Consultancy Services. It is a big step toward TCS’s goal of becoming the biggest AI-led technology services firm in the world.
“We are thrilled to have the Coastal Cloud team join the TCS family. Eric and Altaf Shaikh from ListEngage will bolster our leadership in advancing our Salesforce practice’s next stage of expansion,” she continued.
TCS Accelerates AI Growth
“This is an exciting new chapter for Coastal Cloud, and joining TCS enables us to address our clients’ increasing demands with even more depth, speed, and scale,” stated Eric Berridge, CEO of Coastal Cloud. Together with TCS’s worldwide reach, cutting-edge AI capabilities, and enterprise scale solutions, our team’s Salesforce and multi-cloud knowledge will enable us to offer clients with a wider range of transformation needs.”
The management of TCS outlined its plan to grow AI services and infrastructure through strategic acquisition investments and the establishment of 1 GW of data center capacity during the company’s Q2 results conference in October.
Following the purchase of Coastal Cloud, TCS declared that it will “continue to pursue the M&A strategy consistent with its key goals in AI, Cloud, Cybersecurity, Digital Engineering and Enterprise Solutions.”
