Cyient Limited has entered into a definitive agreement to acquire 100% of the equity share capital in Tao Digital Solutions Inc. a USA-incorporated global digital engineering firm. The transaction implies an enterprise value of US$ 218 million, calculated at approximately 9.5 times the CY27E EBITDA, excluding management incentives and retention schemes.
The consideration is entirely in cash, consisting of an upfront payment and a performance-linked earnout. Cyient expects the acquisition to complete on or before September 30, 2026, subject to customary regulatory approvals and statutory compliances as applicable in relevant jurisdictions.
Tao Digital Solutions specializes in data platforms, AI-enabled solutions, and cloud services, catering to clients in automotive, hi-tech, and healthtech sectors. The company has a global presence across North America, India, Europe, and Asia, with a workforce of approximately 3,500 employees and a distributed delivery footprint.
Revenues for Tao Digital have grown from approximately USD 19.7 million in CY2023 to USD 50.3 million in CY2024 and USD 79.1 million in CY2025. The acquisition will enhance Cyient's capabilities in production-grade AI and data engineering, as well as digital and product engineering, supporting its Intelligent Engineering proposition.
The deal includes group entities in Canada, India, Taiwan, Greece, Germany, Czech Republic, Australia, and New Zealand. Cyient confirmed the transaction is not a related party transaction, and no promoter or group companies have any interest in Tao Digital Solutions.
Cyient stated that Tao Digital brings complementary strengths in production-grade AI and data engineering, and digital and product engineering, which are central to its Intelligent Engineering proposition. The acquisition is expected to fast-track clients to a data-ready foundation, enabling AI at scale and faster outcomes.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.