Cyient agrees to acquire TAO Digital Solutions in $218m deal

Indian engineering solutions steadfast Cyient has agreed to get US-based TAO Digital Solutions for $218m, taxable to customary regulatory approvals and closing conditions.

The transaction, which involves the acquisition of each shares successful TAO Digital, is expected to beryllium completed by the 2nd 4th of fiscal twelvemonth 2027.

TAO Digital Solutions, founded successful 2022 and based successful Santa Clara, California, provides information and merchandise engineering services with a absorption connected AI.

The institution has operations successful the US, Taiwan, Canada, India, and Europe. It serves customers chiefly successful the automotive, hi-tech, and wellness exertion sectors.

TAO Digital generated $80m successful gross successful 2025, with astir 3,500 employees and astir of its transportation centres are successful India.

The acquisition terms includes an upfront outgo of $130m, representing astir 60% of the full and astir 7.9 times TAO Digital’s CY25 EBITDA. The remainder volition beryllium paid done 2 performance-based earnout tranches implicit 2 years pursuing closing.

Cyient stated the woody would beryllium funded chiefly done debt, which volition mostly beryllium repaid by TAO Digital’s ain escaped currency flow.

TAO Digital’s services span information engineering, AI, merchandise engineering, and integer level management.

TAO Digital laminitis and CEO Rajkumar Velagapudi said: “Since founding TAO Digital successful 2022, we person built deep, trusted relationships with immoderate of the world's astir demanding enterprises, earning a beardown estimation for engineering prime and continuous innovation.

“Joining Cyient takes that to a caller level. Cyient's planetary reach, the spot of its lawsuit portfolio, and its decades of method excellence supply the perfect level to amplify what TAO Digital does best.”

Cyient expects the summation of TAO Digital to fortify its capabilities successful AI and information engineering, arsenic good arsenic unreality and prime engineering.

The institution plans to marque TAO Digital a wholly owned subsidiary. Cyient besides mentioned that the acquisition is anticipated to beryllium accretive to net per share.

Cyient enforcement manager and CEO Sukamal Banerjee said: “This acquisition marks a transformative infinitesimal for Cyient, elevating america into a prime radical of partners who tin credibly present AI-native engineering astatine a planetary scale.

“It allows america to connection customers thing rare: domain know-how with information engineering solutions i.e., implicit 3 decades of engineering practice successful the world's astir analyzable industries, fused with AI-native information and lifecycle engineering capabilities built for however endeavor systems are being engineered today.

“The acquisition strengthens our beingness successful Automotive, Hi-Tech, HealthTech sectors, expands our lawsuit footprint importantly successful North America, and expands our transportation scope crossed regions.”