Nature of the Event
Cyient Limited has entered into a definitive agreement to acquire 100% stake in Tao Digital Solutions Inc., a company incorporated in USA, subject to customary closing conditions. This disclosure is made pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015.
Transaction Details
- Percentage Acquired: 100% of the equity share capital of Tao Digital Solutions Inc.
- Additional Entities: The group entities listed in Annexure A will also be acquired as part of the transaction
- Consideration: Cash consideration, including upfront payment and performance-linked earnout
- Enterprise Value: US$ 218 million, approximately 9.5x CY27E EBITDA, excluding management incentives and retention schemes
- Completion Timeline: On or before September 30, 2026
Target Company Background
Tao Digital Solutions Inc. ("Tao Digital") is a global digital engineering firm focused on data, product, and AI-led services, with strengths in data platforms, AI-enabled solutions, and cloud services. Headquartered in the USA, the company has a global presence across North America, India, Europe, and Asia.
Business Operations and Clients
The company serves marquee clients across Automotive, Hi-Tech, and HealthTech sectors. The acquisition will help fast-track clients to a data ready foundation, enabling AI at scale, faster outcomes, and sustainable competitive advantage.
Financial Performance
Tao Digital has demonstrated strong growth over recent years with revenues of:
- CY2023: USD ~19.7 million
- CY2024: USD ~50.3 million
- CY2025: USD ~79.1 million
Note: CY indicates Calendar Year
Workforce Size
The company has a total workforce of approximately ~3,500 employees with a distributed global delivery footprint.
Industry Classification
The acquired entity operates in Digital/Data/AI engineering sector.
Related Party Transaction
This acquisition does not fall within related party transactions. The promoter/promoter group/group companies do not have any interest in the entity being acquired.
Subsidiary Entities Included in Acquisition
The following group entities will be acquired as part of the transaction:
- TAO Digital ULC (Canada)
- TAO Digital India Private Limited (India)
- TAO Digital Taiwan Limited (Taiwan)
- Software Competitiveness International S.A. (Greece)
- Software Competitiveness International GmbH (Germany)
- TAO Digital Solutions Czech Republic S.R.O. (Czech Republic)
- TAO Digital Pty. Ltd. (Australia)
- Tao Digital Solutions Inc NZ branch trading as Tao Digital Solutions NZ (Under liquidation) (New Zealand)