TCS Bolsters Salesforce Advisory with $700 Mn Coastal Cloud …
Analytics India Magazine (C P Balasubramanyam)
Tata Consultancy Services (TCS) has signed a definitive agreement to acquire US-based Salesforce consulting firm Coastal Cloud for $700 million, making it the company’s largest buyout since the $512-million Citigroup Global Services acquisition in 2008.
The deal significantly expands TCS’ position in the global Salesforce ecosystem and deepens its AI-first transformation capabilities.
The acquisition gives TCS 100% ownership of Coastal Cloud, a Salesforce Summit partner known for enterprise-scale, multi-cloud transformation programmes, the company said in a statement.
With this move, TCS has now become one of the world’s top five Salesforce advisory and consulting firms, it added.
Founded in 2012, Coastal Cloud leaders joined the Salesforce Partner Advisory Board earlier this year to shape product innovations and develop the services required to support new launches, the company explained.
The Florida, US-based company saw consolidated turnover of $132 million in the financial year ended December 2024, growing from $114 million in FY22, TCS’ filings with the exchanges showed.
Coastal Cloud is led by Eric Berridge, a Salesforce veteran who has built and scaled category-leading Salesforce services ventures. Salesforce Ventures is a strategic investor in the firm.
The acquisition follows TCS’ purchase of ListEngage in October. The US company is also a Salesforce Summit Partner recognised for Agentforce, its marketing and commerce cloud solution.
Together, ListEngage and Coastal Cloud, TCS said, strengthen its multi-cloud capabilities and add over 400 seasoned professionals with more than 3,000 certifications.
Coastal Cloud also provides TCS with expanded access to the US mid-market segment.
Calling it a pivotal milestone in advancing the company’s global Salesforce capabilities and accelerating the AI-led transformation agenda, Aarthi Subramanian, chief operating officer, TCS, said it is another significant step towards realising the company’s vision of becoming the world’s largest AI-led technology services company.
“By adding over 400 multi-cloud specialists with deep industry expertise, we are strengthening our advisory and business consulting capabilities and enhancing our AI and data offerings,” she said.
Eric Berridge, CEO of Coastal Cloud, called it an exciting new chapter for his company and said that together, both acquisitions can design solutions, modernise complex processes, and unlock new value across industries globally.
“Importantly, this partnership gives us a stronger platform to grow, inspire and attract the industry’s best Salesforce and AI professionals,” Berridge said.
Vikram Karakoti, global head of enterprise solutions at TCS, observed that Coastal Cloud’s multi-cloud capabilities strongly complement TCS’ existing Salesforce strength, and that both acquisitions will help the IT services giant build a world-class Salesforce practice to deliver full-stack, custom solutions globally.
“These two acquisitions expand our geographic presence, deepen our sector capabilities, and significantly strengthen our talent pool, giving us confidence to meet our aspirations and support clients’ agendas in a rapidly evolving technology landscape,” he added.
The Indian IT company also reiterated its focus on pursuing M&A aligned with its priorities in AI, cloud, cybersecurity, digital engineering, and enterprise solutions.
The acquisition is subject to customary conditions precedent and regulatory approvals, it said.
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