TCS to acquire Salesforce consultancy Coastal Cloud in $700-million deal

Tata Consultancy Services (TCS), an India-headquartered IT consulting firm, has agreed to acquire Coastal Cloud, a Palm Coast, FL-based Salesforce consulting firm, for an all-cash consideration of $700 million.

Founded in 2012, Coastal Cloud is a Salesforce summit partner with 400+ professionals holding more than 3,000 multi-cloud certifications. The firm has five offices across Florida, Kentucky, Atlanta, and Virginia.

Coastal Cloud works with mid-market clients across industries on engagements in sales, service, marketing, revenue, CPQ, commerce, and Salesforce data cloud.

“This acquisition marks a pivotal milestone in advancing our global Salesforce capabilities and accelerating our AI-led transformation agenda,” said Aarthi Subramanian, COO of TCS. “It is another significant step towards realizing TCS’s vision of becoming world’s largest AI-led Technology Services company.”

The Coastal Cloud deal builds on TCS’ October acquisition of Listengage, a Framingham, MA-based Salesforce summit partner with approximately 100 employees.

TCS says the pair of deals make a top-five Salesforce consulting firm globally. The 590,000-person consultancy also says the acquisitions reinforce its commitment to clients in the US – the firm’s largest market.

“This is an exciting new chapter for Coastal Cloud, and joining TCS enables us to serve our customers’ evolving needs with even greater depth, speed, and scale,” said Eric Berridge, CEO of Coastal Cloud.

TCS is headquartered in Mumbai and has annual revenue of $30 billion.