Salesforce has obtained commitments for a US$10 billion, 364-day senior unsecured bridge loan to help cover the cost of the acquisition. Salesforce expects to fund the cash consideration with cash from its balance sheet and approximately US$10 billion of proceeds from a combination of the issuance of debt securities and/or term loans.
Why does Salesforce keep making acquisitions?
Over the last few years, Salesforce has made various acquisitions that complement its offerings and technologies. Salesforce is focusing largely on acquiring businesses to reinforce its product portfolio. Salesforce acquired Tableau Software, leading a data analytics platform, in an all-stock deal for a whopping $15.7 billion.
Are Salesforce ISVs attracting private equity funding?
And Salesforce ISVs have also attracted private equity & venture capital funding. Salesforce ($CRM) cloud consulting partners remain in acquisition mode, buying each other worldwide.
What is Salesforce’s most expensive acquisition?
Salesforce acquired Tableau Software, leading a data analytics platform, in an all-stock deal for a whopping $15.7 billion. It is Salesforce’s most expensive acquisition to date, surpassing the $6.5 billion acquisition of MuleSoft in 2018. Acquiring ClickSoftware Technologies was another notable deal for $1.4bn in October 2019.
What companies have been acquired by Salesforce?
October 1, 2019: Salesforce completed its acquisition of ClickSoftware, a leader in field service management solutions. See more. August 1, 2019: Salesforce completed its acquisition of Tableau Software, bringing together the world’s #1 CRM with the world’s #1 analytics platform. See more.
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How did Salesforce finance Slack acquisition?
Salesforce.com Inc. wrapped up an $8 billion bond sale Tuesday to fund its $27.7 billion acquisition of Slack Technologies Inc., a deal designed to help the workplace communications platform reach a wider swath of corporate employees....Ample Issuance.DateBorrowerAmount (in billions of dollars)2021-02-02Boeing109 more rows•Jun 29, 2021
What is Salesforce acquisition?
In 2019, Salesforce acquired Tableau, a data visualization software company, for $15.7 billion and ClickSoftware for $1.35 billion. In 2020, Salesforce acquired Acumen Solutions, a consulting firm, for $570 million, Vlocity, a CRM company, for $1.33 billion, and Slack Technologies for $27.7 billion.
What happens to Slack stock if Salesforce buys them?
Slack Technologies (NYSE:WORK), the collaboration software firm, is the subject of a takeover bid from Salesforce (NYSE:CRM). The agreement stipulates that Slack shareholders will receive $26.79 in cash and 0.0776 Salesforce shares per share of WORK owned.
How will Salesforce pay for Slack?
Shareholders will get $26.79 in cash and 0.0776 shares of Salesforce stock in exchange for each share of Slack, according to Tuesday's deal announcement. Salesforce said it planned to incorporate Slack's communication software into every aspect of its cloud software offerings.
Is Google going to buy Salesforce?
Acquiring Salesforce Google could acquire Salesforce and reach its goal to become the No. 2 cloud player by 2023, RBC said. According to a source who spoke with Business Insider in August, Kurian told employees Google Cloud has a five-year goal to become "at least the No.
How many acquisitions has Salesforce done?
Salesforce has made 55 acquisitions and 96 investments. The company has spent over $ 61.06B for the acquisitions. Salesforce has invested in multiple sectors such as Sales Force Automation, MarketingTech, Enterprise Collaboration and more.
What company is Salesforce buying?
Slack TechnologiesIn early December, salesforce.com (CRM -0.50%) announced that it would acquire workplace communication tool Slack Technologies (WORK) for roughly $28 billion. This was by far the company's largest acquisition to date.
What will Salesforce do with Slack?
Together, Salesforce and Slack will deliver the Slack-first Customer 360 that gives companies a single source of truth for their business, and a single platform for connecting employees, customers, and partners with each other and the apps they use every day, all within their existing workflows.
Why did Salesforce acquire MuleSoft?
MuleSoft creates APIs to connect different systems together. This could be quite useful for Salesforce as a bridge between older software that may be on-prem or in the cloud. It allows Salesforce and its customers to access data wherever it lives, even from different parts of the Salesforce ecosystem itself.
Is Microsoft buying Salesforce?
Microsoft buys Clear Software, an Automation Anywhere & UiPath partner that develops Oracle, Salesforce & SAP workflow automations.
Why does Salesforce pay so much?
Supply & Demand The overarching reason why US salaries are so much higher than the rest of the world comes down to supply and demand. There's no doubt that the US is a powerhouse when it comes to technology, with companies such as Apple, Microsoft & Amazon all hovering around the $1 Trillion market cap mark.
Why is Slack worth $27 billion Salesforce?
So what's the deal with Salesforce's acquisition of Slack for a total of $27 Billion? By acquiring Slack, a business chat service with over 130,000 paid customers, Salesforce strengthens its portfolio of business applications and fills out its broader suite of software for new growth areas.
Why is Salesforce acquiring companies?
It can be summed up in one word: reality. Many businesses have legacy data that they still want to use today. That data includes information and profiles on their customers that's invaluable for future marketing campaigns.
What happens when dividend stocks go up?
Dividend stocks are the Swiss army knives of the stock market. When dividend stocks go up, you make money. When they don’t go up — you still make money (from the dividend). Heck, even when a dividend stock goes down in price, it’s not all bad news, because the dividend yield (the absolute dividend amount, divided by the stock price) gets richer the more the stock falls in price. Knowing all this, wouldn’t you like to own find great dividend stocks? Of course you would! Using the TipRanks databas
Is Salesforce a cloud service?
Once upon a time, Salesforce prided itself as a business offering software that runs in the cloud. Cloud-based solutions are attractive to organizations of all sizes because they don't require on-site software installations. A standard web browser is typically all that's needed to get up and running.
When did Salesforce buy Salesforce?
Salesforce bought it for $337 million in 2011. Salesforce folded these companies into its Marketing Cloud and Commerce Cloud divisions, which supports Salesforce's (mainly digital) marketing tools. The Commerce division supports Salesforce's e-commerce solutions.
Why are cloud based solutions attractive?
Cloud-based solutions are attractive to organizations of all sizes because they don't require on-site software installations. A standard web browser is typically all that's needed to get up and running. Lately, though, Salesforce has been purchasing companies that threaten its cloud-focused message. Take the Tableau acquisition, for example.
What is legacy data?
That data includes information and profiles on their customers that's invaluable for future marketing campaigns. And some businesses were late adopters of cloud technology.
Is Salesforce on a buying spree?
For years now, Salesforce has been on a buying spree that's fueling its growth. However, its acquisition strategy is challenging the company's original mission.
Is Salesforce a growth stock?
Salesforce's acquisition strategy, thus far, is returning value to shareholders. It's also fueling growth.The company is currently trading at about 50 times forward earnings. For some investors, that's a little too overvalued. However, if you've got a long-term outlook and you're on the hunt for a growth stock, it might be just what you're looking for.
3 Reasons Why Salesforce Acquires Businesses
Demand for CRM software is growing. According to the SuperOffice statistics, the CRM business segment’s revenue is expected to reach more than $80 billion by 2025. In turn, Salesforce continues to hunt and acquire innovative companies. What are the primary reasons for such increased interests in software businesses?
Salesforce Activity in Acquiring AI-related companies
The Salesforce State of Connected Customer report states that 62% of customers expect companies to adapt based on their actions and behaviour. Using AI technologies in business processes can help companies provide advanced customer experience and improve customer retention.
Summary
By acquiring digital software in different business niches, Salesforce builds a fully operational ecosystem with its own AppStore. In such a way, Salesforce keeps up the competition with other tech giants like Microsoft and Adobe and stays #1 world’s CRM platform.
1. Slack
One-line Pitch: “Make work life simpler, more pleasant and more productive. Slack is the collaboration hub that brings the right people, information and tools together to get work done.”
2. Tableau
One-line Pitch: “ [Tableau] make breakthrough products that change the way people use data.”
3. Mulesoft
One-line Pitch: “MuleSoft provides a software platform that enables organizations to easily build application networks using APIs…the digital glue that allows applications to talk to each other and exchange data.”
4. Demandware
One-line Pitch: “Demandware provides enterprise cloud commerce solutions that empower the world’s leading retailers to continuously innovate.”
5. ExactTarget
One-line Pitch: “ExactTarget provides on-demand one-to-one email marketing software applications.”
6. ClickSoftware
One-line Pitch: “ClickSoftware improves the efficiency and effectiveness of field service organizations and mobile workforces. Real-time operational intelligence delivers real business value.”
7. Vlocity
One-line Pitch: “Vlocity is built natively on the Salesforce Platform and it is a leading provider of industry-specific solutions”
But, is money all you need to make a buying decision?
Salesforce had money and means to buy Twitter in 2016, which was a troubled social media platform then. The investors, however, questioned the rationale behind the deal in the context of how the purchase will drive its relationship with the customers.
So, what do we learn from this series of acquisitions?
With each and every one of the Salesforce acquisitions, the company augments the capabilities of its platform and offerings. Hence, expanding the ecosystem of enterprise cloud companies and strategic partners, accelerating the adoption of cloud-based technologies and creating the next-gen AI engine, mobile applications, and related products.
Funding
Salesforce has raised a total of $65.4M in funding over 6 rounds. Their latest funding was raised on Jan 1, 2003 from a Venture - Series Unknown round. Salesforce is registered under the ticker NYSE:CRM . Their stock opened with $11.00 in its Jun 23, 2004 IPO. Salesforce is funded by 21 investors.
Funding Rounds
Salesforce has raised a total of $65.4M in funding over 6 rounds. Their latest funding was raised on Jan 1, 2003 from a Venture - Series Unknown round.
IPO & Stock Price
Salesforce is registered under the ticker NYSE:CRM . Their stock opened with $11.00 in its Jun 23, 2004 IPO.
Investors
Salesforce is funded by 21 investors. Emergence and New Enterprise Associates are the most recent investors.
Funds Raised
Salesforce has raised a total of $100M in a single venture fund, Salesforce1 Fund. This fund was announced on Sep 8, 2014 and raised a total of $100M.
Investments
Salesforce has made 47 investments. Their most recent investment was on Jan 24, 2022, when Partnership for Los Angeles Schools raised $1M.
Diversity Investments
Salesforce has invested in Authy on Jan 24, 2022. This investment - Seed Round - Authy - was valued at $1M.
Where is Salesforce located?
Salesforce and Slack are both based in San Francisco, the former at the massive Salesforce Tower at 415 Mission St. and the latter at 500 Howard St. – just across a plaza known as Salesforce Park.
How many Trailblazers are there in Salesforce?
The Salesforce AppExchange has more than 5000 third-party applications and the ecosystem of programmers that develop software around the Salesforce platform – what Salesforce calls “Trailblazers” – numbers more than 2.6 million.
How many users does Slack have?
Slack has more than 12 million active daily users, according to the company’s website. While many are using the free collaboration application, Slack has 142,000 paying customers as of 31 October, according to a Salesforce presentation.
Is Salesforce a software company?
CEO Marc Benioff frequently notes that Salesforce, for much of its history, has been one of the fastest growing software companies ever and the fastest growing in the cloud computing/Software-as-a-Service arena.
Is Salesforce a competitor to Microsoft?
Salesforce competes with Oracle, SAP and Microsoft with its CRM software-as-a-service applications. But the Slack acquisition will put Salesforce on a competitive collision course with Microsoft and its fast-selling Teams collaboration software.
only So Much Room in The Cloud
So Why The Change?
- There's a very good reason why Salesforce is acquiring companies that don't line up with its original charter. It can be summed up in one word: reality. Many businesses have legacy data that they still want to use today. That data includes information and profiles on their customers that's invaluable for future marketing campaigns. And some businesses were late adopters of cloud te…
Other Acquisitions
- Salesforce acquired several companies before the Tableau and MuleSoft purchases. Among them: 1. Datorama - A single platform that includes all marketing analytics. Salesforce bought it for $766 million in 2018. 2. Demandware - A cloud-based e-commerce solution. Salesforce bought it for $2.8 billion in 2016. 3. ExactTarget - An email marketing solut...
Paying Off in The Long Run
- Salesforce's acquisition strategy, thus far, is returning value to shareholders. It's also fueling growth.The company is currently trading at about 50 times forward earnings. For some investors, that's a little too overvalued. However, if you've got a long-term outlook and you're on the hunt for a growth stock, it might be just what you're looking for.