Hyderabad-based Cyient Ltd, a global Intelligent Engineering solutions company, has signed a definitive agreement to acquire TAO Digital Solutions Inc., an AI-native data and product engineering solutions company headquartered in Santa Clara, California, as part of its strategy to strengthen its intelligent engineering and AI capabilities.
The transaction, subject to customary regulatory approvals and closing conditions, is expected to be completed by the second quarter of FY27.
Acquisition to boost AI capabilities
Founded in 2022, TAO Digital has rapidly emerged as a technology partner for global enterprises with operations across the United States, Canada, India, Taiwan and Europe.
The acquisition brings two key capabilities to Cyient’s portfolio, AI and data engineering, and digital and product engineering, both of which are central to the company’s Intelligent Engineering strategy.
Focus on AI-native engineering
According to the companies, the combined entity will help customers build robust data foundations and accelerate adoption of AI-driven solutions, enabling enterprises to scale operations more efficiently and gain long-term competitive advantages.
The acquisition is expected to enhance Cyient’s ability to support customers in their transition towards data-ready and AI-enabled operating environments.
Strengthens presence in key sectors
Cyient Executive Director and CEO Sukamal Banerjee said the acquisition represents a significant milestone in the company’s growth strategy.
“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,” he said.
Expands North America footprint
According to Banerjee, the transaction will strengthen Cyient’s presence in the automotive, hi-tech and health-tech sectors, while significantly expanding its customer base in North America and enhancing delivery capabilities across regions.
He said the acquisition aligns with the company’s strategy of combining deep domain expertise, AI acceleration and portfolio expansion to strengthen its Intelligent Engineering proposition.
Platform for future growth
TAO Digital Founder and CEO Rajkumar Velagapudi said Cyient’s global reach, strong customer relationships and decades of engineering expertise would provide an ideal platform to scale TAO Digital’s capabilities.
He said both companies share a common commitment to delivering enhanced customer value through strong execution, innovation and long-term partnerships.