Salesforce’s stock grew nearly 40 percent this year to an estimated $ 220 billion. On Tuesday, its sales rose 20 percent to $ 5.24 billion in the three months to October.
In February, Salesforce paid $ 1.3 billion for mobile carrier Vlocity. Last year, it bought Tableau, the data analytics provider, for $ 15.3 billion; In 2018, it acquired data transmission company MuleSoft for $ 6.5 billion; And in 2016, it bought an e-commerce software maker called Demandware for $ 2.8 billion. He also invested $ 250 million in the Snowflake data warehouse before it went public in September.
Salesforce has had its own work collaboration product, Chatter, since 2010. Chatter had “limited grip,” according to last week’s report by Goldman Sachs, which highlighted the “strategic merits” of buying Salesforce Slack.
In August, Mr. Benioff told analysts that Salesforce is not looking for acquisitions, suggesting valuations are too high. “We’re not in a good M&A environment,” he said, referring to mergers and acquisitions. – I just don’t see it.
He added, “Maybe things can change.”
In September, Mark Hawkins, chief financial officer of Salesforce, told analysts that the company will continue to be “opportunistic” about the deals.
Bank of America served as financial advisor to Salesforce, while Qatalyst Partners and Goldman Sachs served as financial advisors to Slack.
Erin Griffith from San Francisco and Lauren Hirsch from New York reported.