Salesforce to Buy Tableau Software

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The two companies announced the deal on Monday and explained it will see Salesforce acquire publicly-held Tableau in an all-stock transaction.

Marc Benioff, Chairman and co-CEO, Salesforce, comments: "We are bringing together the world's #1 CRM with the #1 analytics platform". Some of the company's biggest clients include Netflix, Verizon, Charles Schwab, and Schneider Electric.

Through the acquisition, Salesforce expects to play a greater role in driving digital transformation, enabling companies around the world to tap into data across their entire business and surface deeper insights to make smarter decisions, drive intelligent, connected customer experiences and accelerate innovation.

The transaction is expected to increase Salesforce's full year 2020 revenue by $350 - 400m, raising it to $16.45 - 16.65bn; and to decrease its full year non-GAAP operating margin by approximately (75) basis points year-over-year. The company has grown rapidly, reporting fiscal 2018 (ended December 31, 2018) revenue of $1.16 billion, up 18 percent from 2017. The company will continue to operate as a separate brand under its current CEO Adam Selipsky. It will also retain its headquarters at Seattle, Washington.

Salesforce shares are lower on the news because the deal likely stokes concern that the company can no longer sustain growth on its own and is having to buy it, Koenig said.

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Tableau's software is used to create interactive, visual dashboards and graphics used by businesses, universities and governments to analyze data ranging from corporate finances to baseball statistics. The all-stock deal is the company's latest move to ramp up its data visualization tools and to diversify its offerings for its customers. "I look forward to working together in support of our customers and communities".

Tableau's market cap stood at $10.79 billion at the close of trading on June 7.

Last week Google bought analytics startup Looker for $2.6 billion. Insiders have sold 57,781 shares of company stock valued at $6,962,045 in the last three months. The deal also puts Salesforce in even more direct competition with Redmond, Wash. -headquartered Microsoft, both geographically and business-wise.

Hyoun Park, an analyst with technology research firm Amalgam Insights, said that the Tableau purchase is a vital step to help Salesforce compete with Microsoft's Azure Cloud and OneDrive in the cloud data industry.

The takeover will mark Salesforce's largest deal to date, according to data compiled by Bloomberg.

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