TCS to buy US-based Coastal Cloud for $700 million to increase Salesforce capabilities

Tata Consultancy Services’ $700M acquisition of US-based Coastal Cloud aims to boost its Salesforce and AI consulting dominance amid rising cloud transformation demand.

Tata Consultancy Services, India's largest IT services firm, has agreed to acquire US-based Coastal Cloud for $700 million in cash, one of the company's largest transactions in history, as it seeks to expand its Salesforce consulting and AI-advanced transformation services.

According to TCS, the purchase will give it complete ownership of the firm, which is a Salesforce Summit partner recognized for its multi-cloud advising work in marketing, sales, and service transformation. The deal is a component of TCS's effort to expand consulting-based engagements and strengthen its standing in growing cloud ecosystems.

The purchase is part of TCS's continuous attempts to consolidate its Salesforce operations. Another Summit partner with experience in Agentforce, Marketing Cloud, Commerce Cloud, and ListEngage was acquired by the company in October. As per industry analysts cited by local media, TCS will rank among the top five Salesforce advising firms worldwide as a result of the two acquisitions.

TCS's chief operating officer, Aarthi Subramanian, described the deal as a "pivotal milestone" in expanding the company's worldwide Salesforce capabilities and quickening its agenda for AI-based consulting. She added by saying that combining Coastal Cloud's experts would strengthen TCS's advising capabilities and expand its data and AI solutions across industries.

At the end of the 2025, Coastal Cloud expected income 141 million dollars. TCS has access to a wider mid-market portfolio because the customer base is spread across multiple sectors.

In regard to the growing need for cloud modernization and customer experience transformation, this deal highlights TCS's aim of positioning itself as a top provider of AI-based services. Investors will be keeping watch on how fast the company can realize the benefits it has described and mix the new teams.