Salesforce is buying data visualisation company, Tableau for $15.7B in an all-stock deal

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On June 10th 2019, it was announced that global cloud-based software company, Salesforce is buying interactive data visualisation software company Tableau for $15.7 billion, in a bid to enhance its data visualisation tools, and make the most of the data they collect.

This publicly traded deal involves Class A and Class B of Tableau’s common stock, which is being exchanged for 1.103 shares of Salesforce common stock, thus equating to the $15.7 billion figure, as this reflects the value of the transaction which is based on the average price of Salesforce’s shares as of June 7, 2019.

What does this mean for Tableau?

This deal has seen a huge increase in Tableau’s market cap – in the last week the market share of Tableau has seen a 34% increase. By close of trading on Friday 7th June, Tableau was valued at $10.79 (Google Finance).

What does this mean for Salesforce?

This merger means that Salesforce will be able diversify their CRM system even further, as they’ll have the ability to go deeper into their analytics. As well as this, Salesforce will be able to enhance its customer service for existing Salesforce users through engagement and data intelligence.

Co-CEO of Salesforce, Keith Block said: “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.” “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.”