Tata Consultancy Services Limited has successfully completed its strategic acquisition of Coastal Cloud Holdings, LLC on January 14, 2026, marking a significant expansion in the advisory and AI services sector. The completion was disclosed to stock exchanges under SEBI Regulation 30, fulfilling regulatory requirements for material corporate actions.

Transaction Structure and Implementation

The acquisition was executed through a carefully structured dual-phase approach to secure 100% equity interest in Coastal Cloud Holdings, LLC. The transaction details are outlined below:

The first phase involved Trident LE, LLC, a wholly owned subsidiary of ListEngage Midco, LLC, merging with Coastal Cloud, with Coastal Cloud continuing as the surviving company. The second phase saw TCS North America Corporation acquiring the remaining 14% equity interest through the acquisition of 100% equity in SCP V-B Blocker III LLC.

Financial Performance and Business Profile

Coastal Cloud Holdings, LLC operates in the advisory and AI services sector, providing IT and IT-enabled services. The company has demonstrated strong financial performance with consistent revenue growth:

The acquisition brings significant operational capabilities to TCS's portfolio, particularly in the rapidly growing AI services segment. Coastal Cloud's established client base and service offerings align with TCS's strategic expansion objectives in specialized technology services.

Regulatory Compliance and Structure

The transaction was structured to ensure full regulatory compliance and optimal corporate governance. SCP V-B Blocker III LLC, formed on May 13, 2020, served solely as a holding entity for the 14% equity interest in Coastal Cloud without independent operations or assets.

Key regulatory aspects include:

• Related Party Status: The transaction does not constitute a related party transaction
• Promoter Interest: No promoter, promoter group, or group companies have any interest in SCP Blocker
• SEBI Compliance: Full disclosure under Regulation 30 requirements completed
• Rationale: Strategic move to rationalize the group structure of the Company

Strategic Impact and Integration

The completion of this acquisition expands TCS's operational footprint significantly, adding four subsidiary entities across North America. Three subsidiaries located in the USA and one in Canada will become indirect subsidiaries of TCS, enhancing the company's service delivery capabilities and market presence in the region.

The acquisition forms part of TCS's broader strategy to strengthen its position in high-growth technology segments, particularly in advisory services and artificial intelligence solutions. The integration of Coastal Cloud's specialized capabilities with TCS's existing infrastructure is expected to create synergies and enhance service offerings to clients across multiple sectors.

With the successful completion of all regulatory requirements and the formal transfer of ownership, TCS has positioned itself for continued growth in the competitive IT services landscape through strategic acquisitions and organic expansion initiatives.

Tata Consultancy Services has announced a strategic partnership with US chipmaker Advanced Micro Devices (AMD) to help enterprises transition artificial intelligence from pilot projects to large-scale production while modernizing legacy IT systems. The collaboration was announced on Wednesday, January 14, and represents a significant step in scaling enterprise AI solutions.

Partnership Overview and Strategic Focus

The partnership will see both companies co-develop industry-specific AI and generative AI solutions, combining TCS's domain expertise and systems integration capabilities with AMD's high-performance computing and AI hardware portfolio. The collaboration will focus on several key areas including modernizing hybrid cloud and edge environments, deploying AI-powered digital workplace solutions, and accelerating innovation across cloud-to-edge workloads.

AI Revenue Performance and Growth Metrics

This partnership announcement comes as TCS reported strong performance in AI-related services. The company generated over $1.50 billion in revenue on an annualized basis from AI-related services in Q3 of the current financial year, representing nearly 5% of the company's total revenue. During an analyst call, TCS management highlighted robust growth metrics for AI services.

Industry-Specific Solutions and Technology Integration

The partnership will develop sector-specific generative AI frameworks for multiple industries including life sciences, manufacturing, and banking and financial services. These frameworks will cover various use cases such as drug discovery, smart manufacturing, and intelligent risk management. TCS will integrate AMD's comprehensive technology portfolio into these solutions.

Technology Components:

• Client Solutions: AMD Ryzen-powered solutions for workplace transformation
• Computing Infrastructure: AMD EPYC CPUs, Instinct GPUs, and AI accelerators for hybrid cloud modernization
• Edge Computing: AMD's embedded computing portfolio including adaptive system-on-chips and field programmable gate arrays

Workforce Development and Investment

As part of the collaboration, TCS will upskill and certify its workforce on AMD's latest hardware and software platforms. Both companies will jointly invest in building a specialized talent pool to support the partnership's objectives and ensure successful implementation of AI solutions across enterprise environments.

Leadership Perspectives and Market Response

AMD Chair and Chief Executive Lisa Su emphasized that demand for AI is accelerating and requires "a new scale of high-performance computing and deep collaboration across the industry." TCS Chief Executive K Krithivasan described the collaboration as "a significant step in scaling AI for the enterprise," noting that the partnership would help clients move from experimentation to AI deployed at scale.

TCS management expressed confidence that new age services will contribute to nearly $11.00 billion in annualized revenue. The company's shares were trading at ₹3,214.30 apiece, representing a 1.64% increase from the day's opening price.