Salesforce has signed a definitive agreement to acquire analytics platform vendor Tableau in a US$15.7 billion deal.
"We are incredibly excited to announce that we have entered into a definitive deal for Tableau to be acquired by Salesforce in one of the most historic combinations in the history of the software industry," Adam Selipsky, Tableau CEO and founder said.
"In a short 16 years, we have gone from a start-up in a bedroom to a billion dollar public company. We have been able to serve millions of people in more than 86,000 organisations around the world. We have been heads down building and delivering the analytics capabilities that are so critical to all of those customers.
"And with a bright future ahead of us, as we’ve powered through the subscription transition, built an enterprise business, and strengthened so many parts of the company," Selipsky explained adding this was why Tableau was attractive to Salesforce.
Selipsky said that the growth potential is "enormous" and that the founders, board of directors and management team all agreed this was the best way forward.
Under the definitive agreement, Salesforce will acquire Tableau in an all-stock transaction, with each share of Tableau Class A and Class B common stock will be exchanged for 1.103 shares of Salesforce common stock, representing an enterprise value of US$15.7 billion (net of cash).
"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 at 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."
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 FY20 total revenue by approximately $350 million to $400 million.