Cyient to Acquire Tao Digital Solutions for US$218 Million
Cyient Limited will acquire 100% of Tao Digital Solutions Inc. for an enterprise value of US$218 million. The deal, expected to close by September 30, 2026, will enhance Cyient's AI and data engineering capabilities. Tao Digital reported revenues of US$79.1 million in CY2025.
The acquisition of Tao Digital is a strategic move to bolster Cyient's core competencies, which should have a medium-term impact on its growth and market position in the digital engineering space.
The acquisition is positive as it enhances Cyient's capabilities in AI and data engineering, and the enterprise value is based on a reasonable multiple of expected future earnings.
Cyient Limited has entered into a definitive agreement to acquire 100% of Tao Digital Solutions Inc., a USA-based company, subject to customary closing conditions. Tao Digital is a global digital engineering firm specializing in data, product, and AI-led services, with a presence in North America, India, Europe, and Asia. The company serves clients in the Automotive, Hi-Tech, and HealthTech sectors.
The acquisition involves acquiring 100% of Tao Digital's equity share capital, along with its group entities listed in Annexure A. The consideration is cash-based, including an upfront payment and performance-linked earnout. The transaction implies an enterprise value of US$218 million, approximately 9.5 times the CY27E EBITDA, excluding management incentives and retention schemes.
Tao Digital brings complementary strengths in production-grade AI, Data Engineering, and Digital & Product Engineering capabilities, which are central to Cyient’s Intelligent Engineering proposition. The acquisition is expected to be completed on or before September 30, 2026, and is subject to customary regulatory approvals and compliances.
Tao Digital Solutions Inc. reported revenues of approximately USD 19.7 million in CY2023, USD 50.3 million in CY2024, and USD 79.1 million in CY2025. The company has a global workforce of approximately 3,500 employees.
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