Tata Consultancy Services (TCS) has agreed to acquire US-based Salesforce consulting firm Coastal Cloud in a landmark $700 million cash deal, marking one of the largest strategic acquisitions in the company’s history.
The acquisition agreement was signed on December 10, 2025, and the transaction is expected to close by January 31, 2026.
What This Acquisition Means
TCS — one of the world’s largest IT services and consulting firms and a key member of the Tata Group — will gain full ownership of Coastal Cloud, a Salesforce Summit Partner known for enterprise-scale cloud transformation and AI-led advisory services.
This move significantly expands TCS’s capabilities in:
- Cloud and digital transformation services, especially within the Salesforce ecosystem
- AI-driven consulting and advisory solutions
- Salesforce-centric services in sales, service, marketing, commerce, and data cloud platforms
With Coastal Cloud’s team of over 400 multi-cloud specialists and more than 3,000 Salesforce certifications, TCS aims to enhance its global Salesforce consulting footprint and client delivery strength.
Strategic Benefits for TCS
According to TCS officials:
📈 Stronger global Salesforce position: After this acquisition — combined with its recent purchase of ListEngage — TCS now ranks among the top five Salesforce advisory and consulting firms worldwide.
🤖 Boosted AI-led transformation: Coastal Cloud’s deep expertise in AI and multi-cloud consulting complements TCS’s ambitions to lead in AI-first, data-centric enterprise solutions.
🌍 Expanded presence in the U.S. market: The deal strengthens TCS’s position in North America’s mid-market Salesforce ecosystem and enhances opportunities for broader client engagements.
TCS Chief Operating Officer Aarthi Subramanian described the acquisition as a “pivotal milestone in advancing global Salesforce capabilities and accelerating our AI-led transformation agenda.”
About Coastal Cloud
Founded in 2012 and headquartered in Florida, USA, Coastal Cloud is a Salesforce Summit Partner that helps enterprises modernize and scale digital operations. Its services include consulting and implementation across Salesforce platforms such as Service Cloud, Marketing Cloud, Revenue & CPQ Cloud, Commerce Cloud, and Data Cloud.
Coastal Cloud also holds seats on the Salesforce Partner Advisory Board, giving it influence in shaping future Salesforce product innovations and services.
Market Reaction and Financial Signals
Despite the positive strategic outlook, TCS’s stock saw a slight dip following the announcement, reflecting investor focus on acquisition costs relative to near-term revenue impact.
Analysts note that while the acquisition enhances TCS’s cloud consulting portfolio, its immediate contribution to top-line growth may be relatively modest given Coastal Cloud’s revenue size compared with TCS’s overall business
Why This Acquisition Matters
This deal represents:
🔹 TCS’s most significant Salesforce-focused buyout, underlining its push to be a global cloud transformation leader. The Economic Times
🔹 A continuation of its inorganic growth strategy in strategic technology services, especially in AI and digital transformation.
🔹 Enhanced service offerings across industries, from enterprise sales and marketing to AI-driven customer experiences.
For TCS, the Coastal Cloud acquisition signals a major step toward solidifying its competitive edge in a rapidly evolving global tech consulting landscape.
