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Cyient shares gained after the company announced the acquisition of US-based Tao Digital Solutions for $218 million (around ₹2,071 crore).
Tao Digital is a digital engineering company that works with clients across North America, Europe, and Asia, particularly in sectors like automotive, healthcare, and technology.
Worth noting: Cyient is paying roughly 9.5 times Tao Digital’s estimated FY27 EBITDA, signalling its confidence in long-term demand for AI.
What’s going on: analysts estimate the acquisition could add around 12% to Cyient’s Digital, Engineering and Technology (DET) business revenue by FY27.
The deal also significantly expands the company’s presence in North America, one of the world's largest technology spending markets.
Zoom out: engineering and IT services firms are increasingly racing to acquire AI capabilities rather than build them from scratch.
As per estimates, India’s AI market could reach $17 billion by 2027, while India's digital economy is expected to contribute nearly 20% of GDP by 2030.
