Salesforce Inc., a cloud computing firm based in California, has apparently decided to purchase MuleSoft Inc., for a valuation of nearly USD 6.5 billion. As per reliable sources, this acquisition is likely to be Salesforce’s largest ever buyout across the customer relationship software sector.
For the record, Salesforce Inc. seems to be paying nearly USD 36 in cash and 0.0711 shares of its common stock for every one of MuleSoft’s shares. Post the closure of this deal, which could tentatively be dated around the end of July this year, the California cloud computing company would be receiving complete access to MuleSoft’s clientele totaling to 1200. Additionally, Salesforce would be able to reciprocate and offer MuleSoft several of its own products for sale.
Reports claim that the company ultimately aims to double its revenue by 2022. The CEO of Salesforce, Marc Benioff, has apparently stated that the integration of MuleSoft’s business with Salesforce will help the firm reach its targeted sales revenue of USD 20 billion. Salesforce’s Chief Operating Officer, Keith Block has also been quoted saying that the purchase deal is certain to push the firm’s strategy of targeting particular sectors, which include healthcare & medical services, government agencies, and monetary services. Incidentally, the stocks of Salesforce had witnessed a decline by 2.2% after closing at USD 125.12 as observed on New York Stock Exchange.
As per experts, this buyout is likely to help Salesforce Inc. overcome the growth decline that it has been facing recently. For the record, MuleSoft had registered a revenue elevation of nearly 58% in 2017 and its revenue is most likely to increase at nearly 40% in 2018.
Salesforce claims that MuleSoft’s integration will help the company create an ‘Integration Cloud’ service, that would combine the best of conventional in-house corporate computing, online data, and internet applications.