Salesforce to buy Tableau Software for $15.7bn

August 2019 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

August 2019 Issue

In a combination that will drive digital transformation around the world – spending on which the International Data Corporation (IDC) projects will reach $1.8 trillion by 2022 – leading global customer relationship management (CRM) company Salesforce is to buy analytics platform Tableau Software in a deal with an enterprise value of $15.7bn.

Under the terms of the definitive agreement, Salesforce will acquire Tableau in an all-stock transaction, pursuant to which each share of Tableau Class A and Class B common stock will be exchanged for 1.103 shares of Salesforce common stock.

Salesforce believes that its acquisition of Tableau will enable companies around the world to tap into data across their entire business and gain deeper insights to make smarter decisions, drive intelligent, connected customer experiences and accelerate innovation.

“Salesforce’s incredible success has always been based on anticipating the needs of our customers and providing them the solutions they need to grow their businesses,” said Keith Block, co-chief executive of Salesforce. “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.”

Helping people to see and understand data, Tableau’s self-service analytics platform empowers people of any skill level to work with data. From individuals and non-profits to government agencies and the Fortune 500, tens of thousands of customers around the world use Tableau to get rapid insights and make impactful, data-driven decisions. Following close of the acquisition, Tableau will operate independently under the Tableau brand, driving forward a continued focus on its mission, customers and community.

Furthermore, Tableau will remain headquartered in Seattle, and will continue to be led by chief executive Adam Selipsky and the current leadership team. “Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data,” said Mr Selipsky. “As part of the world’s number one CRM company, Tableau’s intuitive and powerful analytics will enable millions more people to discover actionable insights across their entire organisations.”

“We are bringing together the world’s number one CRM with the number one analytics platform,” said Marc Benioff, chairman and co-chief executive of Salesforce. “Tableau helps people see and understand data, and Salesforce helps people engage and understand customers. It is truly the best of both worlds for our customers – bringing together two critical platforms that every customer needs to understand their world. I am thrilled to welcome Mr Selipsky and his team to Salesforce.”

Bank of America Merrill Lynch is serving as exclusive financial adviser to Salesforce, with Wachtell, Lipton, Rosen & Katz and Morrison & Foerster LLP serving as legal counsel. Goldman Sachs & Co. LLC is serving as exclusive financial adviser to Tableau and Cooley LLP is serving as legal counsel.

Salesforce’s acquisition of Tableau is expected to be completed by the end of October 2019, subject to customary closing conditions and receipt of regulatory approvals. The transaction has been approved by the boards of directors of both companies.

Mr Selipsky concluded: “I am delighted that Salesforce and Tableau share very similar cultures and a relentless focus on customer success. I look forward to working together in support of our customers and communities.”

Fraser Tennant