Cyient announced that it has entered into a definitive agreement to acquire TAO Digital Solutions, an AI-native data and product engineering solutions firm headquartered in California. The transaction is subject to customary regulatory approvals and closing conditions and is expected to close by the second quarter of fiscal year 2027.
Founded in 2022, TAO Digital has rapidly expanded its presence across the United States, Canada, India, Taiwan, and Europe, serving enterprise customers in sectors including automotive, high-tech, and healthtech. The company specializes in data engineering, AI-enabled platform solutions, digitization, and cloud services.
According to Cyient, the acquisition will strengthen its Intelligent Engineering strategy by adding two complementary capabilities: AI and data engineering for enterprise-scale AI adoption, and digital and product engineering capabilities spanning cloud-native platforms, application modernization, platform engineering, and quality engineering.
The company said the combination will help customers achieve greater data readiness, enabling AI-driven transformation initiatives built on stronger data foundations. The deal is also expected to expand Cyient’s footprint in North America, enhance its position in automotive, high-tech, and healthtech markets, and broaden its global delivery capabilities.
Cyient currently serves more than 300 customers across 30 countries and employs more than 14,000 associates. The company reported annual revenue of $658 million for fiscal year 2026 and provides engineering services across industries including aerospace, rail, automotive and mobility, connectivity, utilities, mining, energy, healthcare and life sciences, and spatial intelligence.
KEY QUOTES:
“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. It is a significant milestone in the execution of our strategy focused on growth driven by deep domain strength, AI acceleration, and portfolio expansion, while equally strengthening our proposition of Intelligent Engineering for our customers.”
Sukamal Banerjee, Executive Director And CEO, Cyient
“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. We share a genuine commitment to delivering enhanced value for customers through strong execution and partnership. I am excited about what we will build together.”
Rajkumar Velagapudi, Founder & CEO, TAO Digital
