Cyient to acquire Tao Digital in $218 million all-cash deal

Cyient said Saturday it will acquire U.S.-based Tao Digital Solutions Inc. in a $218 million all-cash transaction to expand its data, artificial intelligence and digital engineering capabilities. The Hyderabad-based company announced it has entered into a definitive agreement to acquire 100% of Tao Digital, including its group entities in Canada, India, Taiwan, Greece, Germany, the Czech Republic, Australia and New Zealand. The transaction is expected to close by the second quarter of fiscal 2027, subject to regulatory approvals and customary closing conditions, Cyient said in a regulatory filing. The acquisition will be funded through cash consideration, including an upfront payment and performance-linked earnouts. Tao Digital, founded in 2022 and headquartered in Santa Clara, California, provides data engineering, AI-enabled platform solutions, cloud services and digital product engineering services. Cyient expects the acquisition to strengthen its offerings in AI and data engineering, including enterprise AI adoption, data platform modernization, generative AI deployment and AI lifecycle operations. "(This acquisition) allows us to offer customers something rare: domain know-how with data engineering solutions i.e., over three decades of engineering heritage in the world's most complex industries, fused with AI-native data and lifecycle engineering capabilities built for how enterprise systems are being engineered today," said Sukamal Banerjee, executive director and CEO of Cyient. Tao Digital has about 3,500 employees globally and reported revenue of $79.1 million in calendar 2025.