In probably one of the biggest acquisition in the history of business, Salesforce is going to acquire Seattle-based data visualization company Tableau with a whopping $15.7B in an all-stock deal. As there has been a huge buzz around big data for past many years, we have finally entered an era where data is going to drive the present and future of a business. Technology giants like Google and Salesforce are putting all their money to ensure they offer their customers more data insights. After Google bought analytics startup Looker last week for $2.6B, now the world’s #1 CRM provider Salesforce which is also known for its mega-acquisitions announced their huge Tableau acquisition.
About the mega acquisition
Tableau has more than 86,000 customers including some of the big companies like Verizon Communications Inc and Netflix Inc. As part of the $15.7B all-stock deal, Tableau shareholders will get 1.103 Salesforce shares valuing each share $177.88. Tableau is one of the top data visualization software which is widely used for enterprise settings, including on-premises, Cloud and also hosted settings. Tableau is a very flexible option for an enterprise of any size to manage their data and also very popular for its capability to integrate with various workflows.
The stocks of Tableau surged up by 35% after Salesforce dropped the news. This huge acquisition (biggest in the history of Salesforce) for Salesforce will accelerate their expansion into the extensive layers of analytics.
Salesforce missed out an opportunity to acquire LinkedIn, which ultimately gained by Microsoft. However, Tableau will help Salesforce extend its engagement powered by data intelligence for the customers – something that Salesforce was planning to achieve through LinkedIn.
“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.
Commenting on the news, Tableau’s CEO Adam Selipsky said: “Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data”. As part of the world’s #1 CRM company, Tableau’s intuitive and powerful analytics will enable millions of 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.”
What the future holds?
Salesforce introduced their AI-based initiatives ‘Einstein’ back in 2016. Since then, they have been continuously expanding the platform. In 2018, Salesforce acquired Mulesoft for $6.5B, which helped them access enterprise data. And Tableau acquisition will compliment this very well. We are expecting this deal will accelerate Salesforce’s roadmap for their Customer 360 initiative, which helps organizations achieve a comprehensive view of their customers, and more widely their analytics initiatives.
With this deal, Seattle has now become Salesforce’s official second headquarters.