Tata Consultancy Services (TCS) has announced it will acquire U.S.-based Salesforce consulting firm Coastal Cloud for an enterprise value of USD 700 million in an all-cash deal. It’s considered TCS’s largest acquisition as the USD 700 million Coastal Cloud buyout is the biggest deal the company has ever executed since going public in 2004.
The acquisition marks a significant strategic shift for India’s largest IT services company, which has traditionally followed a conservative mergers and acquisitions approach. Compared to peers such as Infosys and Wipro, TCS has historically favored smaller, capability-driven acquisitions, typically ranging between USD 20 million and USD 100 million. While its 2008 acquisition of Citigroup Global Services Ltd. for approximately USD 505 million was notable at the time, the Coastal Cloud transaction surpasses it in scale and ambition.
Founded in 2012, Coastal Cloud is a Salesforce Summit-tier partner, the highest level in Salesforce’s global partner ecosystem. The acquisition provides TCS with immediate depth and credibility in one of the fastest-growing enterprise software markets. Coastal Cloud brings over 400 Salesforce professionals and more than 3,000 multi-cloud certifications, with expertise spanning Sales, Service, Marketing, Revenue Cloud, CPQ, Commerce, and Salesforce Data Cloud.
Strategically, the deal positions TCS among the Top 5 global Salesforce advisory firms, significantly strengthening its ability to deliver AI-first, agent-driven enterprise transformation programs. Coastal Cloud’s strong U.S. presence also enhances TCS’s footprint in North America, its most critical market, while expanding its access to a high-value client portfolio.
The acquisition aligns closely with TCS’s broader push into AI-led enterprise modernization and platform-centric consulting. By combining its global scale, industry knowledge, and delivery capabilities with Coastal Cloud’s niche Salesforce expertise, TCS aims to accelerate digital transformation outcomes for large enterprises across industries.
However, the deal is not without challenges. Successful integration of Coastal Cloud’s entrepreneurial culture into TCS’s global operating model will be crucial. The competitive landscape remains intense, with firms such as Accenture, Deloitte, and Infosys rapidly scaling their Salesforce and AI practices. Client retention during the transition phase will also be a key focus area.
Overall, the acquisition reflects a larger industry trend of Indian IT majors moving up the value chain toward platform-led consulting and AI-driven services. For TCS, the Coastal Cloud deal signals a bold step toward deeper ownership of the Salesforce ecosystem and a stronger position in next-generation enterprise transformation.
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