Can the acquisition be enough to help Salesforce regain its stance in the market, as well as help boost digital transformation for customers?
In a bid to expand its software offerings, Salesforce has acquired cloud platform MuleSoft in a multi-million dollar deal.
The two companies unanimously agreed to the acquisition, worth $6.5bn, to quicken the delivery of enterprises’ digital transformation journeys.
Known for its integrated cloud platform solution, providing enterprises with tools to automatically integrate apps, devices and data, MuleSoft will open up this offering to Salesforce along with 1,200 of its customers.
The partnership will see the two companies create an ‘Integration Cloud’, which will be powered by MuleSoft’s platform. This will enable all customers to surface any data regardless of its location to deliver a personalised customer experience for enterprises.
“Every digital transformation starts and ends with the customer,” said Marc Benioff, Chairman and CEO, Salesforce. “Together, Salesforce and MuleSoft will enable customers to connect all of the information throughout their enterprise across all public and private clouds and data sources—radically enhancing innovation. I am thrilled to welcome MuleSoft to the Salesforce Ohana.”
Together, the acquisition will enable customers of both businesses to unlock data across various systems. This will help businesses’ networks to run faster, as well as make smarter and quicker decision, which will lead to better connected customer experiences.
The acquisition will allow both companies to accelerate their growth, delivering more innovative solutions to its customers at scale. The two companies aim to put customers at the heart of all initiatives, to help drive their digital transformation.
“Together, Salesforce and MuleSoft will accelerate our customers’ digital transformations enabling them to unlock their data across any application or endpoint,” said Greg Schott, MuleSoft Chairman and CEO. “With the full power of Salesforce behind us, we have a tremendous opportunity to realize our vision of the application network even faster and at scale.”
The acquisition also aims to help Salesforce regain its competitive position in the market, as Oracle and Microsoft dominate and lead the cloud market. By acquiring MuleSoft, Salesforce aims to boost its growth by around 40% in 2018 according to data from Bloomberg.
Under the terms of the agreement, the acquisition will be comprised of $36.00 in cash and 0.0711 of Salesforce common stock for each MuleSoft share. The value is 36% more than MuleSoft’s closing share price on Monday.