To Acquire Tableau Software In $15.7 Bln All-stock Deal To Acquire Tableau Software In $15.7 Bln All-stock Deal

June 10, 2019

CRM software company, Inc. (CRM) agreed Monday to acquire analytics platform Tableau Software, Inc. (DATA) in an all-stock transaction, pursuant to which each share of Tableau Class A and Class B common stock will be exchanged for 1.103 shares of Salesforce common stock, representing an enterprise value of $15.7 billion (net of cash).

The transaction, approved by the boards of directors of both companies, is expected to be completed during Salesforce’s fiscal third quarter ending October 31, 2019, subject to customary closing conditions.

This includes the tendering by Tableau stockholders of shares representing a majority of the Tableau common stock voting power, assuming all shares tendered or converted will be counted on a one-vote-per-share basis, and the receipt of regulatory approvals.

Christian Chabot, Patrick Hanrahan and Christopher Stolte, the founders of Tableau, have all entered into an agreement with Salesforce in connection with the transaction, and have indicated that they intend to tender all of their shares in the exchange offer.

Following the acquisition close, Tableau will operate independently under the Tableau brand, driving forward a continued focus on its mission, customers and community. Tableau will remain headquartered in Seattle, Washington and will continue to be led by CEO Adam Selipsky and the current leadership team.

The transaction is expected to increase Salesforce’s fiscal 2020 total revenue by about $350 million to $400 million, with total revenue now expected to be between $16.45 billion and $16.65 billion, an increase of 24 to 25 percent year-over-year.

The acquisition is expected to decrease fiscal 2020 adjusted earnings per share by about $0.37 to $0.39, with total adjusted earnings per share now expected to be in a range of $2.51 to $2.53.

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