Liquidity Events
Engg services provider Cyient to acquire US-based Tao Digital for $218-M
Publicly listed, Hyderabad-based Cyient Ltd is to acquire a 100% stake in Hyderabad- and Santa Clara, CA (USA)-based Tao Digital Solutions for an enterprise value of USD 218 million. The acquisition is structured as an all-cash deal, consisting of a USD 130 million upfront payment and two earnout tranches payable over a two-year period following the closing of the transaction. This acquisition will be financed primarily through debt and by the internal accruals of Tao Digital.Founded in 2022, Tao Digital is a digital engineering firm that provides AI-native data and lifecycle engineering capabilities. The company operates eight delivery centers and employs about 3,500 people. It generates over 80% of its revenue from data engineering and software product engineering, with a focus on the automotive, hi-tech, and healthcare sectors.
In Oct-24, Tao Digital Solutions had raised USD 35 million in funding from Vesper Company LLC.For FY25, Tao Digital Solutions had reported about INR 280 Cr in Operating Income and about INR 37 Cr in PAT.
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