TCS inks $700 mn deal for US tech co

Tata Consultancy Services (TCS) on Wednesday made its largest buyout since going public in 2004, agreeing to acquire technology consulting firm Coastal Cloud for $700 million in cash.

- Varun Sood

Significantly, the buyout comes less than three months after India's largest IT services firm stated it would invest $6.5 billion over six years to build IGW of data centre capacity, underscoring a new effort by the firm to explore new business segments. Last month, US private equity giant TPG agreed to invest $1 billion to acquire a 49% stake in the data centre business.

"This acquisition marks a pivotal milestone in advancing our global Salesforce capabilities and accelerating our AI-led transformation agenda," said chief operating officer Aarthi Subramanian.

"It is another significant step towards realising TCS's vision of becoming the world's largest AI-led technology services company."