Salesforce Makes Largest Deal to Date with $15.7 Billion Acquirement of Tableau

Salesforce Makes Largest Deal to Date with $15.7 Billion Acquirement of Tableau

Salesforce Makes Largest Deal to Date with $15.7 Billion Acquirement of Tableau

In the massive sea of data that exists in the world, it can be hard to make sense of it all. But the information that is simply collected and not understood is worth very little.

Following the news of Google’s purchase of Looker last week, Salesforce announced on Monday the biggest acquisition in the company’s history with the $15.7 billion purchase of leading analytics platform and big data firm, Tableau.

Since Tableau is publicly traded, the deal will involve Class A and Class B common stock shares being exchanged for 1.103 shares of Salesforce’s common stock, according to a news release made on Salesforce’s website. Hence the enterprise value of the deal is $15.7 billion based on the average price of shares. Tableau shares jumped 35% to $169.50 after the news was announced while Salesforce shares fell by 5% to $156.43. Salesforce thinks Tableau will add approximately $400 million to its 2020 revenue goals.

This is a major deal for Salesforce as it continues to make critical strides forward into big data and analytics and accelerate opportunities for its customers in the digital transformation space. Big data analytics is a very comprehensive process as it discovers and uncovers correlations, patterns, and market trends to help companies make better decisions. The deal is important for Tableau too as it aims to expand its mission of ensuring the world can both see, understand, and use data. Boards of both companies approved the deal.

Marc Benioff, Chairman, and Co-CEO of Salesforce said of the deal, “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. I’m thrilled to welcome Adam and his team to Salesforce.”

“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 of 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.”

“Salesforce’s incredible success has always been based on anticipating the needs of our customers and providing them the solutions they need to grow their businesses,” said Keith Block, co-CEO, Salesforce. “Data is the foundation of every 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.”

Tableau, which has about 86,000 business customers including Verizon and Netflix, will remain headquartered in Seattle and will continue to be led by CEO Adam Selipsky. In a conference call, Salesforce’s co-CEO Marc Benioff let it be known that Salesforce’s official second headquarters would also be in Seattle with the deal expected to close in the third quarter.

Danni White
Danni White
Danni White is the Director of Content Development at Bython Media, the parent company of TechFunnel.com, OnlineWhitepapers.com, BusinessWorldIT.com, List.Events, and TheDailyPlanIOT.com.
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