Shares of Cyient Limited shot up to a day high of Rs 929.60 on NSE on 1 June after the company confirmed it will fully acquire Tao Digital Solutions Inc. for $218 million. The stock opened at Rs 919 and moved up fast in early trade as the deal details came through.

Tao Digital is an AI-native data and product engineering firm based in Santa Clara, California. Founded in 2022, it has around 3,500 employees and works primarily with clients in automotive, healthcare, and hi-tech. 

The company’s focus areas sit squarely in the kind of AI, cloud and data engineering work that larger IT services firms have been expanding into aggressively.

The deal is structured as an all-cash transaction, with an upfront payment of $130 million at closing. The remaining amount is tied to performance-linked earnouts over two years. 

CNBC-TV18 also reported that the acquisition is primarily debt-funded and is expected to close by Q2 FY27. 

Cyient is paying roughly 9.5 times Tao Digital’s estimated CY27 EBITDA, excluding management incentives.

Tao Digital’s own revenue growth has been sharp. Sources reported that it went from $19.7 million in CY23 to $50.3 million in CY24, a jump of 155%, before rising another 57% to $79.1 million in CY25. 

For comparison, Cyient’s digital, engineering and technology segment posted $657.6 million in revenue for FY26, down 0.7% from the prior year.

It is reported that Cyient is targeting mid-to-high single-digit growth in FY27 and that this deal supports its push toward larger, multi-year contracts with more predictable revenue rather than shorter project-based work.

At 10:03 am, Cyient was trading at Rs 916.10 on NSE, up 0.86% on the day. The stock has gained around 6% over the past month but remains down roughly 17% for the calendar year.

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