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TCS is acquiring Coastal Cloud in a $700 million all-cash deal, bringing the AI and Salesforce specialist into its fold through US subsidiary ListEngage.
The deal, expected to close by January 31, 2026, also marks TCS’ second major Salesforce-led acquisition in just three months amid acceleration of its cloud and AI strategy.
Coastal Cloud, a Salesforce Summit Partner backed by Salesforce Ventures, is a Florida-based consulting firm with $141 million in Last Twelve Months (LTM) revenue.
The deets: TCS bought ListEngage for $72.8M in October, and with the addition of Coastal Cloud, it says it will now rank among the top 5 Salesforce advisory and consulting firms globally.
The deal gives TCS access to 400+ mid-sized clients, a strong US talent base, and a Salesforce’s leadership team.
Why it matters: the deal strengthens TCS’ hand in AI, multi-cloud, digital engineering, and Salesforce-led transformations, while helping it expand local US hiring amid visa uncertainties.
It also fits TCS’ broader plan to scale AI services and build 1 GW of data center capacity, as outlined during its Q2 roadmap.
Big theme: with one of the world’s largest digital populations, massive datasets, and a young tech workforce, India has become a prime hub for building and deploying AI at population scale.
Last week, Microsoft announced a $17.5 billion India investment for 2026–2029, its biggest in Asia to build sovereign data centers, expand cloud infra, train 20 million people, and for AI tools. Amazon followed with an even bigger push, taking its India commitment to $35 billion by 2030, focused on AI-driven digitisation and expansion.
