On Monday, Salesforce Inc decided to buy Tableau Software Inc for $15.3 billion with a customer base of 86,000 making one of the biggest acquisitions of company history. The last one was Mulesoft in 2016 at $6.5 billion.
The deal involves shares of Tableau Class A and Class B common stock getting exchanged for 1.103 shares of Salesforce common stock and complete valuation is enterprise value of the transaction, based on the average price of Salesforce’s shares as of June 7, 2019, as per company report.
The share of Tableau rose from 117 USD to 169 USD with a jump of 35% and market cap at 14.15B and Salesforce fell 5% to $156.43 as per Google Finance after the acquisition news.
As per media reports, Salesforce’s two board member has already approved the deal. This is one of the greatest deals of 2019 in the analytics industry. The acquisition will eventually diversify beyond CRM software and into deeper layers of analytics.
“We are bringing together the world’s #1 CRM with the #1 analytics platform. Tableau helps people see and understand data, and Salesforce helps people engage and understand customers. It’s truly the best of both worlds for our customers–bringing together two critical platforms that every customer needs to understand their world,” said Marc Benioff, chairman and co-CEO, Salesforce, in a statement. “I’m thrilled to welcome Adam and his team to Salesforce.”
The deal is expected to be completed by the third quarter. It will increase the company revenue of $400 million in 2020 revenue.
Salesforce’s missed its last deal to buy LinkedIn which Microsoft picked up and the company is hoping to gain the same engagement of clients with the acquisition of Tableau.