Salesforce (NYSE: CRM) announced on Monday morning that it has entered into an agreement to acquire Tableau Software (NYSE: DATA) for a total value of USD 15.7 Billion. Following the news, Tableau shares were trading 35.8% at the opening bell on Monday.
Salesforce said it will acquire Tableau in an all stock transaction, under which each share of Tableau Class A and B common stock will be exchanged for 1.103 shares of Salesforce common stock.
With the acquisition of Tableau, Salesforce is positioned to play a major role within the digital transformation era. For instance, Salesforce developed AI for CRM with Salesforce Einstein, which delivers AI-powered analytics for sales and marketing.
In combination with Tableau and Einstein, Salesforce is able to deliver the most intelligent and intuitive analytics and visualization platform for every department and every user at a company.
Tableau offers its customers self-service analytics. The Company has over 86,000 customers such as Charles Schwab, Verizon, Southwest, and Netflix to help understand and see their data better. With Salesforce, Tableau is positioned to help consumers further understand and see their data in a more transparent manner.
“We are bringing together the world’s #1 CRM with the #1 analytics platform. 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,” said Marc Benioff, Chairman and Co-Chief Executive Officer, Salesforce. “I’m thrilled to welcome Adam and his team to Salesforce.”
In fiscal 2020, Saleforce said it expects the acquisition to increase its total revenue by USD 350 Million to USD 400 Million, totaling an estimated revenue of USD 16.45 Billion to USD 16.65 Billion.
As for earnings, Salesforce projects fiscal 2020 non-GAAP diluted earnings to slightly slip by USD 0.37 to USD 0.39 per share. Now, the Company expects earnings in the range between USD 2.51 to USD 2.53 per share.