Cyient inks $218m all-cash deal to acquire TAO Digital Solutions

Cyient has entered into a definitive agreement to acquire TAO Digital Solutions, an AI-native data and product engineering solutions company based in Santa Clara, California. The deal implies an enterprise value of roughly $218 million and is structured as an all-cash transaction, subject to customary regulatory approvals and closing conditions. The acquisition is expected to close by the second quarter of Cyient’s fiscal year 2027. TAO Digital delivers AI and data engineering for enterprise-scale AI adoption along with digital and product engineering capabilities spanning cloud-native platforms, application modernisation, platform engineering, and quality engineering.

According to Cyient’s disclosures and subsequent coverage, the company will acquire 100% of TAO Digital, including its group entities across Canada, India, Taiwan, Greece, Germany, the Czech Republic, Australia, and New Zealand, significantly expanding its international footprint. The transaction value of about $218 million is to be paid entirely in cash, funded through a mix of internal cash and debt financing, and includes an upfront payment at closing with performance-linked earnouts over two years. TAO Digital operates with strong EBITDA margins of over 20% and generated around $79 million of revenue in the previous year, positioning the deal to be earnings accretive for Cyient from calendar year 2028. Strategically, the acquisition strengthens Cyient’s Intelligent Engineering strategy by adding scaled AI, data, and digital engineering capabilities and broadens its presence in high-growth verticals such as automotive, high-tech, and healthtech, while deepening its customer base in North America.