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Salesforce acquires Tableau for $15.7bn in all-stock deal

Written by Mon 10 Jun 2019

Salesforce continues to diversify beyond CRM with 11-figure acquisition of data analytics company

CRM giant Salesforce is ramping up its analytics efforts in a big way, announcing the acquisition of data visualization giant Tableau Software for $15.7 billion (£12.38 billion) in an all-stock deal.

The news comes just days after Google bolstered its own analytics portfolio with the acquisition of in-demand startup Looker for $2.6 billion (£2.05 billion).

The two companies have entered into a definitive agreement that will see each share of Tableau Class A and Class B traded common stock exchanged for 1.103 shares of Salesforce common stock, the company said.

The deal represents a 5 billion dollar jump in the market cap of Tableau, that was valued at $10.79 billion (£8.59 billion) at the close of trading last Friday according to Google Finance.

Tableau allows organizations to create no-code big data charts and maps. The company is the brainchild of Stanford University researchers and boasts more than 86,000 customers, including Netflix. Although the company registered $1.2 billion (£0.95 billion) in sales last year, it reported losses of $77 million (£60 million).

Salesforce’s omnichannel sales and marking product Customer 360 is already equipped with analytics functions (capabilities now bolstered by AI as part of the company’s Einstein platform) but the addition of Tableau will supplement these services with the company’s data visualization tools, vastly improving the accessibility of Salesforce’s analytics tools.

“Tableau will make both Customer 360 and Salesforce’s analytics capabilities stronger than ever, and enable the company to reach a much broader set of customers and users,” Salesforce said.

Once the acquisition is finalised, Tableau will continue to operate independently under the Tableau brand and remain headquartered in Seattle under the stewardship of CEO Adam Selipsky and the existing leadership team.

“Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data,” said Selipsky. “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.”

“Salesforce’s incredible success has always been based on anticipating the needs of our customers and providing them with 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.”

Salesforce’s move into data visualization comes hot on the heels of the company’s foray into the controversial world of blockchain. Salesforce Blockchain enables organizations to share distributed ledgers between partners and third parties and integrate them with Salesforce functions.

Written by Mon 10 Jun 2019


analytics salesforce tableau visualization
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