Tata Consultancy Services (TCS)has announced the acquisition of Coastal Cloud, a prominent US-based Salesforce consulting firm, for an all-cash sum of $700 million (£550 million), marking its biggest purchase since going public.
The deal positions TCS among the top five global Salesforce advisory and consulting firms, bolstering its capabilities in AI-driven transformations and multi-cloud solutions. Coastal Cloud, established in 2012 and a Salesforce Summit partner, employs over 400 specialists holding more than 3,000 certifications. The firm focuses on enterprise-scale projects in sales, service, marketing, revenue management, and data cloud technologies, serving clients across various industries, including mid-market segments.
This acquisition follows TCS's purchase of ListEngage, another Summit partner specialising in Agentforce, marketing, and commerce cloud expertise, in October this year. Together, the moves enhance TCS's advisory services, geographic reach, and talent pool, enabling it to offer full-stack custom solutions worldwide. The transaction remains subject to customary conditions and regulatory approvals.
Aarthi Subramanian, TCS's chief operating officer, described the move as a 'pivotal milestone in advancing our global Salesforce capabilities and accelerating our AI-led transformation agenda'. She added that it supports TCS's ambition to become the world's largest AI-led technology services organisation, welcoming Coastal Cloud's team under the leadership of CEO Eric Berridge and Altaf Shaikh from ListEngage.
Berridge, a seasoned Salesforce executive, echoed the enthusiasm, stating, "Joining TCS enables us to serve our customers' evolving needs with even greater depth, speed, and scale." He highlighted the synergy between Coastal Cloud's expertise and TCS's global infrastructure in addressing complex digital needs.
Vikram Karakoti, global head of enterprise solutions at TCS, noted that the acquisitions "expand our geographic presence, deepen our sector capabilities, and significantly strengthen our talent pool", reaffirming commitment to existing clients amid a fast-changing tech landscape.
The deal underscores TCS's aggressive expansion in cloud, AI, cybersecurity, and digital engineering, particularly in the United States, its largest market, where the company has operated for over 50 years.
TCS layoffs in India
However, the announcement comes against a backdrop of workforce reductions at TCS in India, its home base. Reports indicate the firm has sacked more than 12,000 employees this year, primarily mid- and senior-level staff, as part of a restructuring to align skills with emerging technologies like AI. Officials have attributed the cuts to skill mismatches rather than automation, though unions have raised concerns over the scale and process with which the layoffs have been conducted. TCS maintains that affected employees received notice periods and severance entitlements.
