Salesforce finally acquires Tableau for $15.7B

Andrew Cummings
June 12, 2019

Salesforce's customer relationship management software will benefit from using Tableau's large data analytics in unraveling hidden patterns, unknown correlations, market trends and customer preferences.

'Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data.

It's being described as a way for Salesforce customers to unlock greater value from their data, as well as drive the vendor a further step forward in what IDC identifies as the $1.8 trillion digital transformation space.

The San Francisco-based company said the deal is likely to add up to $400m in its 2020 revenue, but would decrease adjusted profit by about 37 cents to 39 cents per share. In its last fiscal year, which ended January 31, Salesforce earned $1.43 per share on $13.28 billion in revenue.

"We are bringing together the world's No. 1 CRM with the No. 1 analytics platform", said Salesforce chairman and co-CEO Marc Benioff in a statement announcing the deal. It will also retain its headquarters at Seattle, Washington.

Announced on Monday, the deal would surpass the size of company's previous acquisitions, including the $6.5 billion it paid for enterprise software company Mulesoft in 2018, and $582 million for workplace software firm Quip in 2016. The company's data analytics software for businesses is used by about 86,000 companies, including Netflix, the... 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. It offers Tableau Desktop, a self-service, powerful analytics product with data; Tableau Server, a business intelligence platform for organizations; Tableau Online, a hosted software-as-a-service version of Tableau Server; Tableau Prep, a data preparation product for combining, shaping, and cleaning data; and Tableau Public, a cloud-based platform for analyzing and sharing public data. Tableau will also make Salesforce's Customer 360 and analytics capabilities stronger, allowing the company to reach more customers, it noted. "I'm delighted that our companies share very similar cultures and a relentless focus on customer success".

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 acquisition will merge the top CRM and analytics platform to help speed customer digital transformations.

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