Salesforce.com Inc. (NYSE: CRM) said that they would pay a total $360 million to buy 6-year-old startup SteelBrick, according to an SEC filing yesterday.
There are some rumors last week saying that the deal will be at $600 million. But it turned out to be just half of it. The $360 million are divided into two parts, $300 million are used to acquire SteelBrick and $60 million are used to deduct Salesforce Ventures’ previous investment.
SteelBrick is a cloud-based company. It is dedicated to making selling simple and helps small- and medium-size companies accelerate growth by automating quoting, contracting, and billing processes with its Quote-to-Cash product suite. In other words, it helps sales people make quotes and billings easier for potential customers.
In October, SteelBrick had raised $48 million in series C funding and one of the investor was Salesforce. The company had raised a total $78 million since it was founded in 2009. It had a valuation of $250 million in October.
Salesforce has been active in growing its business through merger and acquisition. The SteelBrick acquisition will be the largest deal in these two years. This deal is expected to bolster Salesforce’s cloud business to compete with the other three cloud business giants Amazon, Microsoft and Google.