As companies around the world accelerate their adoption of artificial intelligence, engineering, and technology solutions, provider Cyient has taken a major step to strengthen its digital capabilities. The Hyderabad-based company has entered into a definitive agreement to acquire TAO Digital Solutions, a California-headquartered AI-native digital engineering firm, in a move aimed at expanding its expertise in AI, data, cloud, and digital product engineering.
The acquisition marks another strategic milestone for Cyient as it continues to invest in technologies that help enterprises modernize operations and build AI-powered solutions.
Cyient Expands Its AI and Digital Engineering Portfolio
Cyient announced that it has signed a definitive agreement to acquire TAO Digital Solutions Inc., a company headquartered in Santa Clara, California. The transaction remains subject to customary regulatory approvals and closing conditions.
According to the company, the acquisition is expected to be completed by the second quarter of fiscal year 2027. Founded in 2022, TAO Digital has established itself as a specialist in AI-native digital engineering services. The company operates across the United States, Canada, India, Taiwan, and Europe, serving customers in industries including automotive, high technology, and healthcare technology.
TAO Digital’s capabilities span data modernization, AI and machine learning solutions, cloud engineering, application modernization, platform engineering, and quality engineering. Cyient said these strengths will complement its existing engineering and technology services portfolio.
Strengthening Enterprise Digital Transformation
Cyient stated that the acquisition will enhance its ability to support customers pursuing large-scale digital transformation initiatives. By combining Cyient’s engineering expertise with TAO Digital’s AI-native capabilities, the company aims to deliver more comprehensive solutions across the product and technology lifecycle.
The deal is also expected to strengthen Cyient’s presence in key sectors where demand for AI-driven innovation continues to grow. These include automotive, high-tech, and healthcare technology industries.
Sukamal Banerjee, Chief Executive Officer and Executive Director of Cyient, described the transaction as an important milestone in the company’s growth journey. He said the combination of Cyient’s engineering heritage and TAO Digital’s advanced digital capabilities would help customers accelerate innovation and create greater business value.
Transaction Valued at Approximately $218 Million
According to Cyient’s regulatory filing, the transaction implies an enterprise value of approximately $218 million. The company will acquire 100% of the equity share capital of TAO Digital and its related entities.
The acquisition aligns with Cyient’s broader strategy of strengthening its position in fast-growing areas such as artificial intelligence, cloud technologies, digital platforms, and data engineering.
Looking Ahead
The agreement reflects the increasing importance of AI and digital engineering in today’s technology landscape. As enterprises seek to modernize systems and unlock value from data, demand for specialized digital engineering expertise continues to rise.
With the planned acquisition of TAO Digital, Cyient is positioning itself to address these opportunities by expanding its capabilities and global reach. Subject to regulatory approvals and customary closing conditions, the transaction is expected to close during FY27, opening a new chapter in Cyient’s digital growth strategy.
