Salesforce to Acquire MuleSoft for $6.5 Billion

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Salesforce (NYSE: CRM) agreed to buyMuleSoft (NYSE: MULE) for $6.5 billion, making it the company’s largest acquisition ever, as part of its expansion for growth. MuleSoft shares closed 27 percent higher on Tuesday before surging another 5 percent during after-market hours.

Under the agreement, Salesforce’s acquisition will be $36.00 in cash and 0.0711 of the company’s common stock per MuleSoft Class A and Class B common share, representing a 36 percent premium of Monday’s closing price.

MuleSoft provides one of the world’s leading platforms for building application networks the connect enterprise apps, data and devices across any cloud and on-premise.

“Together, Salesforce and MuleSoft will enable customers to connect all of the information throughout their enterprise across all public and private clouds and data sources—radically enhancing innovation. I am thrilled to welcome MuleSoft to the Salesforce Ohana." said Marc Benioff, Chairman and CEO, Salesforce.

Salesforce says the acquisition will help build toward the company’s vision of the application network with Anypoint Platform and MuleSoft will power Salesforce’s Integration Cloud to enable all enterprises across any data and drive deeper customer experience on a 1:1 journey.

Other major companies such as Oracle (NYSE: ORCL) and Microsoft (NASDAQ: MSFT) were also looking to acquire MuleSoft to expand it enterprise applications using MuleSoft’s technology offerings.

Salesforce aims to double its annual revenue by 2022 due to recent declining revenue, as MuleSoft has a customer base consisting of major corporations such as Coca-Cola, Barclays, Unilever and Mount Sinai.

"With the full power of Salesforce behind us, we have a tremendous opportunity to realize our vision of the application network even faster and at scale," said Greg Schott, MuleSoft Chairman and CEO. "Together, Salesforce and MuleSoft will accelerate our customers' digital transformations enabling them to unlock their data across any application or endpoint."

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