Economy

Salesforce acquires analytics platform Tableau for $15.7 billion

Salesforce acquires analytics platform Tableau for $15.7 billion

Coatue Management LLC now owns 2,412,405 shares of the software company's stock valued at $289,489,000 after purchasing an additional 934,635 shares during the last quarter. The company's chairman, Marc Benioff mentioned in a statement that the combination of the world's top CRM provider and the top analytics platform should result in a collaboration that would essentially be a match made in heaven.

"Tableau helps people see and understand data, and Salesforce helps people engage and understand customers", Benioff said.

'Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data.

Tableau has more than 86,000 customers of all sizes around the world, including Charles Schwab, Verizon, Chipotle, Lufthansa, Honeywell, Hello Fresh, Netflix and PEMCO Insurance. On average, sell-side analysts expect that Tableau Software Inc will post -0.81 EPS for the current fiscal year.

Fiscal year 2020 revenue is now estimated to range between $16.45 billion and $16.65 billion, an increase of 24% to 25% year-over-year. The company will continue to operate as a separate brand under its current CEO Adam Selipsky. Tableau will also still remain in its headquarters in Seattle, with it also serving as Salesforce's second headquarters.

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It surpasses the $5.9 billion that Salesforce paid to buy US software maker MuleSoft in 2018.

Tableau Software, Inc, together with its subsidiaries, provides business analytics software products. Tableau will also make Salesforce's Customer 360 and analytics capabilities stronger, allowing the company to reach more customers, it noted.

Last week Google announced its intention to buy insight platform Looker, which will be integrated into Google Cloud. "I look forward to working together in support of our customers and communities". Bank of America reissued a "buy" rating and issued a $160.00 price target (up previously from $152.00) on shares of Tableau Software in a research note on Friday, May 3rd. The all-stock deal is the company's latest move to ramp up its data visualization tools and to diversify its offerings for its customers. The company's revenue for the quarter was up 14.7% compared to the same quarter past year.

It comes on the heels of another major acquisition in the data visualization space, this one from Google.

According to an IDC report from a year ago, worldwide spending on technologies and services that will enable digital transformation to reach $1.8 trillion in 2022. "This presents a great opportunity for customers to unlock further business value by drawing insights from data".