Sverica Capital Management Announces Sale of Coastal to Tata Consultancy Services for $700 Million

AUSTIN, Texas--(BUSINESS WIRE)--Sverica Capital Management LP ("Sverica") announced today the sale of its Fund V portfolio company Coastal Cloud Holdings, LLC (“Coastal” or the "Company") to Tata Consultancy Services Limited (or "TCS") for $700 million. This marks the culmination of a five-year successful partnership with Coastal, during which the Company more than quadrupled in size while maintaining best in class profitability and solidified its market leadership as one of the largest and fastest growing Salesforce partners in the United States.

Based in Palm Coast, Florida, Coastal was founded in 2012 by Sara and Tim Hale with the goal of creating a modern consulting firm with a singular mission: helping organizations achieve more using Salesforce and data. The Company provides strategy, implementation, and modern managed services to assist clients in migrating to next-generation systems via a long-term “clients for life” approach that executes on each customer’s Data and AI roadmap. Coastal has executed exceptionally on its founding mission, surpassing 8,000 successful projects to date and delivering measurable outcomes for their clients as showcased by their perfect 5/5 rating on the Salesforce AppExchange.

Coastal has experienced significant growth since Sverica's initial investment in June 2020. Under Sverica's ownership, Coastal built a dedicated go-to-market function, made strategic investments in Data and AI, introduced offerings in other next generation ecosystems such as Snowflake, and significantly expanded its team with talented executives. As a result of these efforts, Coastal has received numerous industry accolades including: named #1 Salesforce Consultancy by G2 (3x winner); named Salesforce & AI Leader by ISG; and earned Partner Innovation Award from Salesforce (3x winner). Additionally, Coastal continues to be a thought leader for Salesforce, holding six Partner Advisory Board positions.

Jordan Richards, Managing Partner at Sverica, said, "I am grateful to Tim and Sara Hale for the trust they placed in Sverica over five years ago, choosing us as the partner and steward of the business they built. It has been a rewarding experience collaborating with the extraordinary team at Coastal to build what is now recognized as a category-defining consultancy across the Salesforce, Snowflake, and data and AI ecosystems. The strategic addition of Eric Berridge to lead the company two years ago was a game-changing moment that solidified the platform for this successful outcome. We are confident that Eric and the entire Coastal team are well positioned to blaze new trails and achieve new heights as a member of the TCS organization."

Eric Berridge, CEO of Coastal, said, "This is a landmark day for Coastal as we join teams with Tata Consulting Services. Our partnership with Sverica was critical in helping Coastal to scale its business and become the #1 Salesforce and AI consultancy in North America. Our future is bright as our Coastal team is prepared to take our services to new heights with the scale and innovation that TCS is known for globally. We are grateful to the team at Sverica for their thoughtful and diligent leadership that they provided during our partnership."

Sara and Tim Hale, Co-Founders of Coastal, added, "Since founding Coastal in 2012, we have focused on providing the best technology consulting services in our industry and growing by building the strongest team of professionals in the marketplace. When we sought a partner to accelerate our trajectory in 2020, we prioritized one that was founder-friendly and respected our unique culture. Sverica proved to be an exceptional partner, providing not just the capital but the strategic expertise and operational support that allowed us to innovate and scale without ever compromising our core values. That shared vision was essential to reaching this milestone. We are now excited for this next phase of growth and customer success with the global reach and capabilities of TCS. The synergies of TCS and Coastal offer our clients and people an incomparable range of outcomes in this new era of data and AI."

"It has been an honor to partner with Coastal. From our very first meeting at Dreamforce in 2018, it was clear that Coastal was a special organization led by visionary co-founders in Tim and Sara. Their intense focus on customer success and innovation created a strong foundation for the incredible organic growth that Coastal has achieved. Eric and the talented Coastal team not only continued the Company's momentum but also increased the Company's strategic bets on innovation and thought leadership leveraging data and AI. As a result, Coastal is positioned to continue delivering immense value to customers as it joins forces with TCS," said Ryan Harstad, Partner at Sverica.

Guggenheim Securities, LLC served as the exclusive financial advisor, and Choate, Hall & Stewart LLP served as counsel to Coastal on the transaction.

About Sverica Capital Management

Sverica Capital Management is a leading growth-oriented private equity firm that has cumulative committed capital of $2.2 billion since inception. The firm acquires, invests in and actively builds companies that are, or could become, leaders in their industries. Since inception, Sverica has followed a "business builder" approach to investing and takes an active supporting role in its portfolio companies. Sverica devotes significant internal time and resources to help its management teams develop and execute growth strategies and proactively looks for levers to pull to accelerate growth by reinvesting back into those companies. Sverica firmly believes in building businesses collaboratively that can endure for the long term by starting with a strong foundation and bringing the right people and playbook to drive reinvestment and ultimately strong returns for our investors.

For more information, please visit Sverica.com.

About Coastal

Since 2012, Coastal has helped more than 1,700 organizations do more with Salesforce, Snowflake, and data. Led by former Salesforce executives, enterprise IT veterans, and industry experts, Coastal’s heavily certified team brings breadth of knowledge to deliver fast, measurable impacts – powered by automation-driven delivery and solution accelerators. From data modernization to Agentforce to Salesforce innovation, you can count on Coastal to solve today’s – and tomorrow’s – most complex challenges. Coastal is proud to have a perfect 5/5 rating on the AppExchange, ISG’s recognition as the leading Salesforce & AI consultancy, six Salesforce Partner Advisory Boards seats, and three Salesforce Partner Innovation Awards. Discover more at www.coastalcloud.us, or connect with Coastal on LinkedIn.