Salesforce has announced it is buying Tableau in a $15.7bn all-stock deal in order to enhance its data visualization capabilities and add more tools to help businesses make sense of the huge datasets available to them.
The two companies have agreed that Class A and Class B common stock shares of Tableau will be exchanged for 1.103 shares of Salesforce common stock, making the $15.7bn valuation the enterprise value of the transaction based on Salesforce's average price as of June 7, 2019. The previous week, Tableau was valued at $10.79bn.
"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," remarked Keith Block, co-CEO 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."
Adam Selipsky, president and CEO of Tableau, added: "Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data. As part of the world's #1 CRM company, Tableau's intuitive and powerful analytics will enable millions more people to discover actionable insights across their entire organizations."
Salesforce,who beat analysts' expectations in its 1Q19 financial results last week, has been trying to diversify its offerings beyond CRM software by investing in providing enterprises with deeper layers of analytics.
Experts have linked the move to Microsoft's acquirement of Looker for $2.6bn last week, suggesting that the CRM giant is attempting to bolster its offerings to remain competitive.