TCS Buys US Firm Coastal Cloud in $700 Million All-Cash Deal

TCS’s all-cash acquisition of US-based Coastal Cloud brings more than 400 consultants and deep multi-cloud expertise into its Salesforce practice, positioning the Indian IT firm among the top global advisory partners after its recent ListEngage deal.

Reading Time: 3 minutes 

Topics

  • Tata Consultancy Services Ltd (TCS), India’s largest IT outsourcing firm, has agreed to buy Coastal Cloud, a US-based Salesforce Summit partner, in an all-cash deal valued at about $700 million, expanding the Indian IT firm’s access to mid-market clients and deepening its role in the Salesforce ecosystem.

    TCS said the acquisition brings more than 400 consultants with over 3,000 multi-cloud certifications, strengthening its advisory and implementation capabilities in the US, its largest market.

    Coastal Cloud, founded in 2012, works on enterprise-scale Salesforce transformations across sales, service, marketing, revenue and data cloud projects.

    The firm is led by Salesforce veteran Eric Berridge, who earlier co-founded Bluewolf and helped build it into one of the largest Salesforce consultancies before its sale to IBM. Coastal Cloud has also received strategic investment from Salesforce Ventures.

    He has acted as a strategic investor in Coastal Cloud and will join TCS as part of the transaction.

    TCS said the purchase advances its strategy to build one of the world’s largest Salesforce practices and aligns with its broader shift toward AI-driven consulting and industry cloud services.

    The deal follows its October acquisition of ListEngage, another Salesforce Summit partner known for its work in Agentforce, Marketing Cloud and Commerce Cloud. With both firms integrated, TCS said it expects to rank among the top five Salesforce advisory and consulting partners globally.

    Aarthi Subramanian, the company’s chief operating officer, said the acquisition strengthens TCS’s AI-led transformation agenda and expands its portfolio of multi-cloud specialists.

    She said it also reinforces the company’s ambition to become the world’s largest AI-led technology services provider.

    TCS executives said the combined talent from Coastal Cloud and ListEngage, including Berridge and ListEngage executive Altaf Shaikh, will shape the next phase of the firm’s Salesforce strategy.

    Berridge said joining TCS opens a “new chapter” for Coastal Cloud, allowing its teams to deliver projects at greater scale and speed.

    He said the firm’s multi-cloud expertise, combined with TCS’s global footprint and AI capabilities, positions the combined practice to modernize processes and design next-generation solutions for clients across industries.

    Vikram Karakoti, global head of enterprise solutions at TCS, said Coastal Cloud’s capabilities complement TCS’s existing Salesforce team and broaden its sector expertise and regional reach.

    He said the company is building a full-stack Salesforce advisory and delivery organization that will compete at the top tier of the market.

    TCS said the acquisition also reflects its continued investment in the US and fits into its M&A agenda focused on AI, cloud, cybersecurity, digital engineering and enterprise solutions.

    Topics

    More Like This

    You must to post a comment.

    First time here? : Comment on articles and get access to many more articles.