AI-driven growth of TCS makes its M&A strategy more aggressive

Even as Tata Consultancy Services (TCS) on Wednesday announced one of its largest ever acquisitions, the market reaction remained subdued.

- SHIVANI SHINDE

Coastal Cloud will be the second acquisition of TCS focused on acquiring Salesforce capability

While analysts considered the deal expensive, many agreed that Al-driven growth is pushing TCS to become more aggressive in its mergers and acquisitions (M&A) strategy.

India’s largest IT services provider announced the acquisition of US-based Coastal Cloud in an all-cash transaction of $700 million. The last such acquisition TCS did was in 2008, when it acquired Citigroup's captive BPO arm Citigroup Global Services for $505 million.

On Thursday, TCS stock opened at 3,206 per share, up marginally by 0.56 per cent. The stock closed at 3,191.6 per share, marginally up from the previous day’s close of %3,188.15 per share.