Cyient Limited has entered into a definitive agreement to acquire 100% of Tao Digital Solutions Inc. a USA-headquartered global digital engineering firm, for an enterprise value of US$ 218 million. The cash consideration includes upfront payment and performance-linked earnout, implying a valuation of approximately 9.5x CY27E EBITDA, excluding management incentives and retention schemes.
Tao Digital is a digital engineering firm focused on data, product, and AI-led services. Headquartered in the USA, Tao Digital operates across North America, India, Europe, and Asia, serving clients in the Automotive, Hi-Tech, and HealthTech sectors. The company employs approximately 3,500 people with a distributed global delivery footprint.
Tao Digital has demonstrated strong growth in recent years. CY2023 revenues stood at USD 19.7 million, rising to USD 50.3 million in CY2024, and reaching USD 79.1 million in CY2025. The company specializes in production-grade AI and data engineering, along with digital and product engineering capabilities.
The acquisition adds complementary strengths to Cyient's Intelligent Engineering proposition. Together, Cyient and Tao Digital will enable clients to achieve AI at scale, faster outcomes, and build a data-ready foundation for sustainable competitive advantage. The transaction is subject to customary regulatory approvals and statutory compliances.
The completion of the acquisition is expected on or before September 30, 2026. Seven group entities of Tao Digital will also be acquired as part of the transaction, located in Canada, India, Taiwan, Greece, Germany, Czech Republic, and Australia.
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.