Cyient Limited has entered into a definitive agreement to acquire 100% of the equity share capital of Tao Digital Solutions Inc., a global digital engineering firm headquartered in Santa Clara, California. The transaction implies an enterprise value of US$ 218 million and is scheduled for completion by Q2 FY27. This strategic acquisition aims to bolster Cyient's Intelligent Engineering proposition by integrating Tao Digital's strengths in AI-native data and lifecycle engineering capabilities.

Founded in 2022, Tao Digital has scaled rapidly, serving marquee clients in sectors such as Automotive, Hi-Tech, and HealthTech. The firm brings a workforce of approximately 3,500 employees and a global delivery footprint across North America, India, Europe, and Asia. The company provides services in data platforms, AI-enabled solutions, and cloud services, solving complex business and technology challenges for global enterprises.

Tao Digital has demonstrated significant revenue growth over the past three calendar years. The company reported revenues of approximately US$ 19.7 million in CY2023, which rose to US$ 50.3 million in CY2024 and further increased to US$ 79.1 million in CY2025. This growth trajectory underscores the target entity's strong position in the digital, data, and AI engineering industry.

The consideration for the acquisition will be paid in cash, comprising an upfront payment and a performance-linked earnout. As part of the deal, Cyient will also acquire several group entities of Tao Digital located across various jurisdictions, including Canada, India, Taiwan, Greece, Germany, the Czech Republic, and Australia. One entity in New Zealand is currently under liquidation.

Acquisition Details

The following table outlines the key parameters of the transaction:

Tao Digital Financial Highlights

Tao Digital's rapid revenue expansion reflects its strong positioning in the digital and AI engineering space, as summarised below:

The transaction is subject to customary regulatory approvals and closing conditions. The deal was intimated to the stock exchanges on May 30, 2026, under Regulation 30 of the SEBI (LODR) Regulations, 2015. The acquisition is not a related party transaction, and the promoters or promoter group of Cyient have no interest in the entity being acquired.

Cyient Limited has been named a Leader in all three quadrants of the ISG Provider Lens 2026 Digital Engineering Services report for the United States. This recognition covers Augmented Design & R&D Services, Intelligent Operations & Connected Experiences, and Integrated Platform & Application Services. The company is the only mid-size pure-play engineering services firm to hold Leader positions across all three Digital Engineering Services quadrants simultaneously in North America.

The ISG Provider Lens report evaluates technology and service providers on portfolio attractiveness and market presence. ISG analysts noted Cyient's strengths in remote monitoring, predictive analytics, embedded systems expertise, and its consulting-led approach to engineering transformation. The report highlighted the company's ability to combine deep engineering heritage with AI-led platforms such as its Engineering Intelligence Platform.

“North America is a strategically vital market for Cyient, and being named a Leader across all three ISG Digital Engineering Services quadrants is a powerful validation of the breadth and depth of what we deliver,” said Harjott Atrii, Chief Business Officer, Cyient. He emphasized that the recognition mirrors the company's end-to-end partnership approach across the entire product lifecycle.

The report stated that Cyient demonstrates strong Digital Capabilities across the value chain by bridging silicon-to-service capabilities with domain-specific AI and digital twins. This positions the company as a strategic partner for mission-critical, asset-intensive industries undergoing outcome-focused transformation.

Key Recognition Areas

Cyient serves industries including Aerospace & Defense, Automotive & Mobility, Semiconductor, Energy, Utilities, and Spatial Intelligence. The company reported $658M in annual revenue for FY26 and is recognized among the Top 10 pure-play global engineering services providers.