Cyient Limited has entered a definitive agreement to acquire U.S.-based Tao Digital Solutions Inc. in an all-cash transaction valued at $218 million [1].
This acquisition allows the India-based firm to expand its footprint in the North American market while integrating advanced data and AI capabilities. By absorbing Tao Digital, Cyient seeks to accelerate its digital engineering services to meet growing industrial demand.
According to company data, Tao Digital operates with an EBITDA margin of more than 20% [3]. This profitability profile is expected to contribute to Cyient's overall financial health as the two entities integrate their operations.
Cyient expects the deal to drive mid-single-digit revenue growth in FY27 [3]. The company further anticipates that the transaction will be earnings-per-share (EPS) accretive starting from FY28 [3].
Sukamal Banerjee, the Executive Director and CEO of Cyient, said the move is designed to strengthen the company's capabilities in data, artificial intelligence, and digital engineering [2].
The agreement marks a strategic push for Cyient to scale its specialized services, integrating Tao's technical expertise into its existing global delivery model.
“Cyient entered a definitive agreement to acquire Tao Digital Solutions in an all-cash transaction valued at $218 million.”
This acquisition signals Cyient's strategic shift toward high-margin AI and digital engineering services. By acquiring a U.S. firm with a strong EBITDA margin, Cyient is not only buying market share in North America but also upgrading its technical stack to remain competitive in the AI-driven industrial services sector.
