Tata Consultancy Services has successfully completed its acquisition of Coastal Cloud Holdings, LLC on January 14, 2026, marking a significant milestone in the IT giant's expansion strategy. The completion was announced through a regulatory filing under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Acquisition Structure and Components

The acquisition involved a comprehensive two-part structure to secure 100% equity interest in Coastal Cloud Holdings, LLC. The transaction was designed to rationalize the group structure of the company while expanding its service capabilities in advisory and AI services.

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

Target Company Profile

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

Subsidiary Integration

The acquisition will bring four additional subsidiaries under the TCS umbrella, expanding the company's geographical footprint and operational capabilities. Three subsidiaries are located in the USA, while one operates in Canada, providing TCS with enhanced North American market presence.

Transaction Details and Compliance

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. The transaction structure ensures compliance with regulatory requirements, with the company confirming that the deal does not constitute a related party transaction and that promoter groups have no interest in SCP Blocker.

The completion of this acquisition strengthens TCS's position in the advisory and AI services market while adding significant revenue-generating assets to its portfolio. The structured approach demonstrates the company's strategic focus on expanding its capabilities through targeted acquisitions in high-growth technology segments.

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.