Comprehensive M&A data with integrated detailed company information
Salesforce to acquire Tableau for USD 15.7bn
Posted on Tuesday, 11 June 2019 06:27
Salesforce has agreed to buy US-based analytics platform Tableau Software in an all-stock transaction worth USD 15.70 billion.
Under the terms of the deal, the acquiror is offering 1.10 shares for every class A and class B common scrip owned in the target, or USD 177.88 apiece based on the trailing 3-day volume weighted average price of the purchaser’s equity, on a tax-free basis for the vendors.
The offer represents a premium of 42.1 per cent to Tableau’s close of USD 125.21 on 7th June 2019, the last trading day prior to the announcement, which gives the company a market capitalisation of USD 10.79 billion.
Shares in the business have jumped 34.6 per cent to USD 168.58 at 09:21 today, after the news was made public.
The transaction creates the world’s leading customer relationship management (CRM) analytics platform, while accelerating Salesforce’s opportunity in the USD 1,800 billion digital transformation space.
Founded at the Stanford University, Tableau is focused on helping people see and understand data, whereas Salesforce helps customers engage and interact with customers.
The target has over 86,000 clients, including Verizon, Southwest and Netflix.
It is expected to become a part of Salesforce in the third quarter of 2019, following shareholder and regulatory approvals.
The addition of Tableau will increase the buyer’s fiscal 2020 total revenue by about USD 350.00 million to USD 400.00 million to USD 16.45 billion and USD 16.65 billion, up either 24.0 per cent or 25.0 per cent year-on-year.
According to the target’s website, by 2020 the world will generate 50.0x the amount of data as in 2011 and 75.0x the number of information sources.
Tableau generated total revenue of USD 282.46 million in the three months ended 31st March 2019, a 14.7 per cent increase on USD 246.21 million in the corresponding period of 2018.
Net loss widened to USD 88.88 million in Q1 2019, compared to a loss of USD 46.47 million in Q1 2018.
© Zephus Ltd