Salesforce to Acquire Tableau for $15.7 Billion; Seattle To Remain Second Headquarters
Some of the major tech companies are interested in buying startups. Last week, Google acquired Looker an analytic startup firm for $2.6 billion. Now, another firm is heading towards acquiring data visualization firm. Salesforce revealed its big plan on Monday, in order to expand its work in the field of data visualization. Salesforce will soon acquire Tableau for worth $15.7 billion and all through a stock transaction.
It will buy Tableau Software Inc. and also make Seattle as Salesforce second headquarters. Tableau will work independently and will remain under its brand. Tableau brand is headed by a former Amazon Web Services executive, CEO Adam Selipsky. Soon after announcing the development news of buying Tableau, Salesforce mentioned at a news release.
Nearly, 1,000 employees are working in the Washington State of Salesforce. Tableau has employed more than 4,200 people across the world.
Co-founder and co-CEO of Salesforce, Marc Benioff mentioned acquiring Tableau, will make Seattle as the second headquarters of Salesforce. ‘It’s going to become our HQ2 if you will.’
Tableau of Seattle servers more than 86,000 of its customers also includes leading tech companies such as Verizon Communications and Netflix.
Steve Koinig, Wedbush Securities Analyst, stated:
The acquisition accelerates Salesforce’s roadmap for their Customer 360 initiative, which helps companies gain a complete view of their customers, and more broadly their analytic initiative.
Selipsky, along with its existing leadership team, said the contract will close in the Q3, and after the deal, the data visualization firm will work independently.
Benioff announced Tableau assist people to see and understand data, while Salesforce assists people to understand and engage customers. If the deal is successfully closed, then the revenue of Salesforce will increase by $400 million within 2020 but will reduce adjusted profit by 37 percent to 39 percent each share.
Salesforce stated the company predicts the adjusted profit of 2020 to be around $2.51 to $2.53 per share. While, analysts hope the adjusted profit to be around $2.90 per share, report as per Refinitiv’s IBES data.
The shares of Salesforce were down by 5 percent at $156.43 and shares of Tableau soar by 35 percent at $169.50 in premarket trading.
Koenig responded to the share price fall, saying shares of Salesforce are trading down, and this could be due to the fear of the company acquiring growth because of slow organic growth. It’s natural to ask.
Benioff is planning to expand in the area of Washington State and Kirkland Office of Tableau as of now and further intends to enhance Tableau Seattle and Salesforce area existence.
I’m a huge admirer of the talent market in Seattle. There are few places you can put together a software company at scale.
Tableau expects to launch its new office of 100,000 square foot in the Kirkland Urban development in summer. Earlier to this, the data visualization firm had expanded headquarter in Fremont close to its previous headquarters. In 2018, Tableau had nearly 2,130 employees working in Washington State and maximum employees placed in the Puget Sound region.
Tableau offers services to more than 86,000 organizations, and with Salesforce merging will help to Tableau to increase the volume of its products. Spelipsky hopes the collaboration will help Tableau to earn millions of more customers.
Tableua Software announced on Twitter via official company account:
For Tableau is a big day today! We are uniting with the Salesforce family, and together, we will work to accelerate our mission of helping people to see and understand data. Our data family just became bigger!