TCS’s Largest Acquisition Yet: $700M Coastal Cloud Takeover

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.

TCS has historically been conservative with M&A compared to peers like Infosys or Wipro. Most of its earlier acquisitions were smaller, niche deals in the range of USD 20–100 million, often focused on specific technology capabilities or regional expansion.

In 2008, TCS acquired Citigroup Global Services Ltd. for about USD 505 million — that was significant at the time but still smaller than the Coastal Cloud deal.

Coastal Cloud is a Salesforce Summit-tier partner, giving TCS a direct boost in one of the fastest-growing enterprise software markets. Coastal Cloud's U.S. base strengthens TCS's presence in its most important geography. The acquisition aligns with TCS's push into Al-led enterprise modernization, positioning it among the Top 5 global Salesforce advisory firms

Key Details of the Acquisition

• Deal Size: USD 700 million (approx. ₹6,286 crore)
• Structure: 100% stake acquisition, all-cash consideration
• Target Company: Coastal Cloud, a Salesforce Summit-tier partner founded in 2012
• Capabilities Added:
  • 400+ Salesforce professionals
  • 3,000+ multi-cloud certifications
  • Expertise in Sales, Service, Marketing, Revenue, CPQ, Commerce, and Salesforce Data Cloud
• Strategic Impact:
  • Positions TCS among the Top 5 global Salesforce advisory firms
  • Strengthens AI-first, agent-driven transformation capabilities
  • Expands client portfolio and accelerates enterprise modernization

Strategic Rationale

• Salesforce Expansion: Coastal Cloud is a recognized leader in Salesforce consulting, boosting TCS’s practice.
• AI & Cloud Transformation: Aligns with TCS’s push into AI-led enterprise modernization and multi-cloud adoption.
• Global Positioning: Coastal Cloud’s U.S. base strengthens TCS’s North American presence.
• Largest Acquisition: One of the largest acquisitions by an Indian IT firm to date.

Risks & Considerations

• Integration challenges between Coastal Cloud’s culture and TCS’s global scale
• Competitive landscape with Accenture, Deloitte, Infosys scaling Salesforce practices
• Client retention during transition is critical

Strategic Outlook

• TCS aims to dominate the Salesforce ecosystem globally
• Leverages Coastal Cloud’s niche expertise to accelerate enterprise digital transformation
• Reflects industry trend: Indian IT majors moving into platform-led consulting and AI-driven services