Salesforce to buy Tableau Software for $15.3 bn, to add $400 mn revenue

CRM major Salesforce.com is set to buy big data company Tableau Software for $15.3 billion in an all-stock deal.
Salesforce CEO Marc Benioff at Dreamforce 2017
This will be the biggest acquisition in the history of Salesforce.com.

Tableau shareholders will get 1.103 Salesforce shares, valuing the offer at $177.88 per share, which represents a premium of 42 percent to Tableau’s Friday closing price.

Salesforce said the deal, which is expected to close in the third quarter, is likely to increase its 2020 revenue by up to $400 million.

The company earlier forecast full-year 2020 profit between $2.74 and $2.76 per share and revenue between $15.95 billion and $16.05 billion.

“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,” said Marc Benioff, chairman and co-CEO of Salesforce.

Research agency IDC projects spending on technologies and services that will enable digital transformation to reach $1.8 trillion in 2022.

“Data is the foundation of digital transformation, and the addition of Tableau will accelerate our ability to deliver customer success by enabling a truly unified and powerful view across all of a customer’s data,” Keith Block, co-CEO of Salesforce, said.

More than 86,000 organizations including Charles Schwab, Verizon, Schneider Electric, Southwest and Netflix, rely on Tableau.

Tableau will remain headquartered in Seattle, Wash. and will continue to be led by CEO Adam Selipsky and the current leadership team.

Salesforce has a community of more than 1.4 million Trailblazers, and Tableau community consists of more than 1 million data enthusiasts.

Microsoft’s customer relationship management and enterprise resource planning service, Dynamics 365, grew 51 percent in the company’s latest reported quarter.

Salesforce’s Germany rival SAP added muscle to its CRM software offerings in November with its $8 billion deal for Qualtrics International.

Salesforce.com was also in talks to acquire U.S.-Israeli software developer ClickSoftware Technologies for around $1.5 billion.

Earlier, Salesforce acquired Datorama, an Israeli cloud-based artificial intelligence marketing platform, for $850 million.

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