TCS to buy U.S. Salesforce firm Coastal Cloud for $700Mn

MUMBAI, INDIA, and FLORIDA, UNITED STATES — Tata Consultancy Services (TCS) has signed a definitive agreement to acquire 100% stake of the U.S.-based Salesforce Summit partner and multi-cloud consulting firm Coastal Cloud for $700 million in an all-cash deal, significantly expanding its artificial intelligence (AI) and cloud transformation offerings. 

“This acquisition marks a pivotal milestone in advancing our global Salesforce capabilities and accelerating our AI-led transformation agenda,” said Aarthi Subramanian, Chief Operating Officer (COO) at Tata Consultancy Services.

TCS pairs global scale with Coastal Cloud’s Salesforce AI expertise

TCS is a global provider of digital transformation with more than 50 years of engineering excellence and a workforce of 590,000 people, creating long-term, adaptive relationships with industry leaders worldwide. The company is ranked #8 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.

While TCS operates on a vast global scale, other consultancies carve out dominance through deep specialization in key platforms. 

Since 2012, Coastal Cloud has positioned itself as a top Salesforce and AI consultancy with a 5/5 AppExchange rating and a team of top executives who hail from Salesforce. 

This focus on delivering concrete outcomes and a client-centric approach has won the company several innovation awards and the confidence of more than 1,700 customers who rely on data to grow their organizations.

Deal boosts TCS Salesforce, data cloud and AI capabilities

By absorbing Coastal Cloud, TCS gains deep sector expertise in enterprise-scale transformations across sales, service, marketing, and Salesforce Data Cloud. 

Subramanian notes, “By adding over 400 multi-cloud specialists with deep industry expertise, we are strengthening our advisory and business consulting capabilities and enhancing our AI and data offerings.”

The deal follows the earlier purchase of ListEngage, signaling a concerted push to build a full-stack, world-class Salesforce practice with enhanced advisory and business consulting capabilities.

The infusion of Coastal Cloud’s team, which holds over 3,000 multi-cloud certifications, is designed to strengthen TCS’s AI and data offerings, enabling the combined entity to serve client needs with greater depth and speed.

As Eric Berridge, Chief Executive Officer (CEO) of Coastal Cloud, said, “This is an exciting new chapter for Coastal Cloud, and joining TCS enables us to serve our customers’ evolving needs with even greater depth, speed, and scale.

Acquisition advances TCS M&A strategy and U.S. Salesforce market reach

The Coastal Cloud purchase underscores TCS’s aggressive inorganic growth strategy to achieve scale and market leadership through targeted acquisitions. 

This $700 million transaction is a direct investment to rapidly acquire talent, specialized knowledge, and a complementary customer portfolio, including access to the mid-market segment. It is a strategic acceleration of TCS’s merger-and-acquisition plan, based on its main priorities in AI, Cloud, and Enterprise Solutions.

The merger instantly changes the competitive landscape, elevating TCS to the top tier of Salesforce partners worldwide.

Global Head, Enterprise Solutions at TCS, Vikram Karakoti, notes that this move aims to “expand our geographic presence, deepen our sector capabilities, and significantly strengthen our talent pool, giving us confidence to meet our aspirations and support clients’ agendas in a rapidly evolving technology landscape.”

This consolidation is aimed at delivering stronger client outcomes and accelerating growth across all key global markets, particularly in the United States, which remains TCS’s largest market.

The transaction is expected to close after completion of customary conditions precedent and receipt of necessary regulatory approvals.