TCS shares in focus as company makes $700 million Coastal Cloud acquisition

Shares of Tata Consultancy Services will be in focus on Thursday, December 11, after the company announced a $700 million all cash acquisition of AI services and advisory firm Coastal Cloud. The deal is expected to close by January 31, 2026.

This is one of TCS's biggest buyouts since its 2004 listing and comes as the company steps up its inorganic push.

Coastal Cloud posted revenue of $132 million in 2024 and $141 million in the twelve months ended September 2025.

TCS, which has traditionally relied on organic growth, has recently turned more aggressive on acquisitions. In October, it bought US based ListEngage MidCo for $72.8 million. The company has also committed $6.5 billion over six years to build 1GW of data centre capacity.

In its exchange filing, TCS said Coastal Cloud carries an enterprise value of up to $700 million, including upfront and deferred payments, subject to customary post closing adjustments.

Coastal Cloud Holdings is a Salesforce summit partner and part of Salesforce Ventures' portfolio. It provides consulting, implementation and managed services across Service Cloud, Sales Cloud, Marketing Cloud, Revenue & CPQ Cloud and Commerce Cloud. The company also brings strong data and AI capabilities, working with Agentforce, Salesforce Data Cloud, Snowflake, Mulesoft and Tableau. It employs about 400 Salesforce certified professionals.

The acquisition will be executed through ListEngage MidCo, a wholly owned TCS subsidiary in the US. Founded in 2012 and headquartered in Florida, Coastal Cloud is one of the largest pure play Salesforce partners with strong advisory depth, multi cloud services and expertise in AI and Agentforce. It has more than 400 customers, a solid presence in the mid market segment and a strong US based workforce, giving TCS additional local scale at a time of continued uncertainty around H-1B visas.

With Coastal Cloud and ListEngage, TCS said it will rank among the top five Salesforce advisory and consulting firms globally.

TCS COO Aarthi Subramanian said the acquisition is a major step forward in expanding the company's Salesforce capabilities and advancing its AI led transformation strategy, calling it a significant milestone in TCS's ambition to become the world’s largest AI led technology services company.

Coastal Cloud CEO Eric Berridge said joining TCS opens a new chapter for the firm, allowing it to serve customers with greater scale, speed and depth by combining its multi cloud and Salesforce expertise with TCS's global reach and advanced AI solutions.

Shares of Tata Consultancy Services Ltd

. settled 0.73% lower on Wednesday at ₹3,185. The stock is down 23% in 2025 so far.