Salesforce to acquire analytics platform Tableau Software for $15.7bn
Salesforce, a world-leader in the provision of customer relationship management (CRM) solutions, announced today that it has entered into a definitive agreement to acquire Tableau Software. Based in Seattle, Tableau hosts a self-service analytics platform that specializes in making data insights available to users of any technical skill level.
The deal will see Salesforce acquire Tableau in an all stock transaction. Each share of Tableau Class A and Class B common stock will be exchanged for 1.103 shares of Salesforce common stock, representing an enterprise value of US$15.7bn.
"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.
Salesforce is looking to harness the power of Tableau’s analytics capabilities in order to help its customers “supercharge” their digital transformations. This project, Salesforce 360, will be a pioneering step towards the application of AI-generated insights into CRM.
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"Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data," said Adam Selipsky, President and CEO of Tableau.
"As part of the world's #1 CRM company, Tableau's intuitive and powerful analytics will enable millions more people to discover actionable insights across their entire organizations. I'm delighted that our companies share very similar cultures and a relentless focus on customer success. I look forward to working together in support of our customers and communities."
FY20 Revenue: The transaction is expected to increase Salesforce's FY20 total revenue by approximately $350mn to $400mn. This estimate reflects a fair value adjustment to reduce unearned revenue and unbilled unearned revenue by approximately 30%, adjustments related to the combined customer base, and intercompany revenue elimination, as required by U.S. GAAP. FY20 Revenue is now expected to be $16.45bn to $16.65bn, an increase of 24% to 25% year-over-year.
The acquisition marks the continuation of a market-wide trend that betrays the value analytics firms are to have going forward. Last week, according to TechCrunch, Google purchased analytics firm Looker for $2.6bn. For Salesforce, the move represents significant diversification and empowerment of their existing CRM offerings.
