Salesforce buying Tableau Software in $15.7B all-stock deal

Salesforce buying Tableau Software in $15.7B all-stock deal
In this May 16, 2019 file photo, Salesforce chairman Marc Benioff speaks during a news conference, in Indianapolis. Salesforce is buying Tableau Software in an all-stock deal valued at $15.7 billion. The buyout is expected to close during Salesforce's fiscal 3rd quarter. (AP Photo/Darron Cummings, File)

Customer-management software developer Salesforce is buying Tableau Software in an all-stock deal valued at $15.7 billion.

Tableau uses self-service analytics to help people with any skill level work with data. Among the companies that use Tableau's services are Charles Schwab, Verizon and Netflix. Once the transaction closes, Tableau will operate independently and stay headquartered in Seattle.

"Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data," Tableau President and CEO Adam Selipsky said in a prepared statement.

The announcement comes a few days after Google said it is purchasing data analytics firm Looker for $2.6 billion in order to expand its Google Cloud business.

"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," Salesforce Chairman and co-CEO Marc Benioff said in a statement.

The acquisition is expected to add about $350 million to $400 million to Salesforce.com Inc.'s fiscal 2020 revenue.

Each share of Tableau common stock will be exchanged for 1.103 shares of San Francisco-based Salesforce.

The deal, which was approved by both companies' boards, is expected to close during Salesforce's fiscal third quarter.

It's the biggest acquisition by Salesforce since it bought MuleSoft for $6.5 billion in March 2018.

Shares of Tableau Software Inc. jumped 34.1% in morning trading on Monday. Salesforce's fell 4.5%.


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Citation: Salesforce buying Tableau Software in $15.7B all-stock deal (2019, June 10) retrieved 17 June 2019 from https://phys.org/news/2019-06-salesforce-tableau-software-157b-all-stock.html
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