Tata Consultancy Services has officially executed a Securities Purchase Agreement and Plan of Merger to acquire 100% stake in Coastal Cloud Holdings, LLC and its subsidiaries for an all-cash consideration of $700.00 million. The Board of Directors approved the transaction at their meeting held on December 10, positioning TCS among the top 5 Salesforce advisory and consulting firms globally while strengthening its strategic positioning to drive AI-first, agent-driven transformation.
Transaction Structure and Regulatory Details
The acquisition will be executed through ListEngage MidCo, LLC, a wholly-owned subsidiary of TCS in the USA. To consummate the transaction, ListEngage will simultaneously incorporate two wholly-owned subsidiaries in the USA.
| Transaction Parameter: |
Details |
| Enterprise Value: |
Up to $700.00 million |
| Payment Structure: |
All cash consideration with upfront and deferred payments |
| Shareholding Acquired: |
100% |
| Expected Completion: |
By January 31, 2026 |
| Regulatory Approval: |
Hart-Scott-Rodino antitrust (HSR) approval in USA |
| Board Meeting Duration: |
5:30 PM to 6:20 PM on December 10 |
Coastal Cloud's Business Profile and Performance
Founded in December 2012 and based in Florida, Coastal Cloud is a Salesforce Summit Partner and Salesforce Ventures portfolio company. The firm offers consulting, implementation and managed services across multiple Salesforce clouds including Service Cloud, Sales Cloud, Marketing Cloud, Revenue CPQ Cloud, and Commerce Cloud.
| Financial Performance: |
Revenue (USD Million) |
| FY22: |
$114.00 million |
| FY23: |
$119.00 million |
| FY24: |
$132.00 million |
| Last Twelve Months (Sept): |
$141.00 million |
| Workforce: |
Nearly 400 Salesforce skilled professionals |
Strategic Impact and AI Capabilities
Coastal Cloud brings strong Data AI expertise offering implementation and integration of Agentforce, Salesforce Data Cloud, Snowflake, Mulesoft and Tableau. The company has nominations on Salesforce Partner Advisory Boards, enabling them to shape product innovations and develop services for new launches.
Combined with TCS's October acquisition of ListEngage, another Summit Partner, TCS will add over 400 seasoned professionals with more than 3,000 multi-cloud certifications. This positions TCS to deliver AI-led advisory and business consulting capabilities across verticals globally.
Leadership and Market Positioning
Eric Berridge, CEO of Coastal Cloud and a proven Salesforce veteran, will strengthen TCS's leadership in propelling the next phase of growth for their Salesforce practice alongside Altaf Shaikh from ListEngage. The acquisition provides TCS access to mid-market customer segments and enables synergies across both companies' customer bases.
Aarthi Subramanian, Chief Operating Officer at TCS, described this as "a pivotal milestone in advancing our global Salesforce capabilities and accelerating our AI-led transformation agenda," reinforcing TCS's vision of becoming the world's largest AI-led Technology Services company.
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