Salesforce buys Tableau Software for United States dollars 15 bln worth of shares

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Salesforce buys Tableau Software for United States dollars 15 bln worth of shares

Salesforce's deal comes days after Alphabet Inc's Google bought big-data analytics company Looker for $2.6 billion and surpasses the $5.9 billion that the cloud-based software company paid to buy US software maker MuleSoft in 2018.

'We are bringing together the world's number one CRM with the number one analytics platform. Marc Benioff, Salesforce co-CEO, also said the company will make Seattle its official second headquarters.

The acquisition is expected to accelerate Salesforce's opportunity in the Dollars 1.8 trillion digital transformation space by helping customers unlock more value from their data for enhanced customer experiences.

The takeover of Tableau is Salesforce's largest acquisition to date and will play a key role in the company's ambition to reach an annual revenue goal of up to $28bn by 2023.

Fiscal year 2020 revenue is now estimated to range between $16.45 billion and $16.65 billion, an increase of 24% to 25% year-over-year.

In the statement, both vendors also noted their community of users - 1.4 million Trailblazers on the Salesforce side, and 1 million data enthusiasts on Tableau's.

Trading of Tableau's shares has been suspended because of the Salesforce acquisition. The decision to acquire Tableau, an analytics platform and data visualization specialist with over 86,000 clients worldwide, highlights the firm's shift into the analytics field and diversification beyond its main CRM product line.

Fellow co-chief executive Keith Block said: "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".

Especially in highly regulated industries like health care and financial services, that greater degree of data agility will give Salesforce partners a competitive edge, she said.

The current data analytics acquisition binge gained momentum last week when Google's (NASDAQ: GOOGL) cloud unit announced a $2.6 billion all-cash deal to buy data platform and visualization tool vender Looker. Salesforce is planning to conduct the purchase through Tableau's Class A and Class B common stock.

Constellation Research analyst Holger Mueller compared Salesforce and Google's recent deals and claimed that Google "got the better deal" because the search giant paid far less for Looker. It makes sense for Salesforce - as many other enterprise solution providers - to want to tap into this lucrative market, as well as future-proof itself against other companies interested in the same fields.

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