Indian engineering solutions firm Cyient has agreed to acquire US-based TAO Digital Solutions for $218m, subject to customary regulatory approvals and closing conditions.
The transaction, which involves the purchase of all shares in TAO Digital, is expected to be completed by the second quarter of financial year 2027.
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TAO Digital Solutions, founded in 2022 and based in Santa Clara, California, provides data and product engineering services with a focus on AI.
The company has operations in the US, Taiwan, Canada, India, and Europe. It serves customers primarily in the automotive, hi-tech, and health technology sectors.
TAO Digital generated $80m in revenue in 2025, with about 3,500 employees and most of its delivery centres are in India.
The purchase price includes an upfront payment of $130m, representing roughly 60% of the total and about 7.9 times TAO Digital’s CY25 EBITDA. The remainder will be paid through two performance-based earnout tranches over two years following closing.
Cyient stated the deal would be funded mainly through debt, which will largely be repaid by TAO Digital’s own free cash flow.
TAO Digital’s services span data engineering, AI, product engineering, and digital platform management.
TAO Digital founder and CEO Rajkumar Velagapudi said: “Since founding TAO Digital in 2022, we have built deep, trusted relationships with some of the world’s most demanding enterprises, earning a strong reputation for engineering quality and continuous innovation.
“Joining Cyient takes that to a new level. Cyient’s global reach, the strength of its customer portfolio, and its decades of technical excellence provide the ideal platform to amplify what TAO Digital does best.”
Cyient expects the addition of TAO Digital to strengthen its capabilities in AI and data engineering, as well as cloud and quality engineering.
The company plans to make TAO Digital a wholly owned subsidiary. Cyient also mentioned that the acquisition is anticipated to be accretive to earnings per share.
Cyient executive director and CEO Sukamal Banerjee said: “This acquisition marks a transformative moment for Cyient, elevating us into a select group of partners who can credibly deliver AI-native engineering at a global scale.
“It 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.
“The acquisition strengthens our presence in Automotive, Hi-Tech, HealthTech sectors, expands our customer footprint significantly in North America, and expands our delivery reach across regions.”
The combination of the two companies is expected to offer clients improved support as they adopt AI and digital engineering at scale. Cyient highlighted that the deal aligns with customers’ growth plans in sectors such as aerospace, energy, and medical technology.
