Published on : Mar 21, 2018
Artificial intelligence (AI) and machine learning technologies are proving as a springboard for launching innovative services and creating new paradigms. New in the paradigm is contextual microservices that hopes to do away with traditional monolithic applications and products. Companies offering cloud-based enterprise software are increasingly capitalizing on these opportunities. With an intention to get access to enterprise-wide network, Salesforce.com, a U.S.-based cloud computing company, confirmed on March 20, 2018 that it intends to buy Mulesoft, a software company also headquartered in San Francisco, in $6.5billion deal.
The staggering valuation of the deal isn’t necessarily the selling price but has been based mainly on stock prices, bond, and cash on hand. The company specializing in offering CRM platforms didn’t disclose the exact prices of the deal, but indicated that for each Mulesoft share it agrees to pay $36 in cash and 0.0711 of its own shares. Of note, the price is tagged at $44.89-a premium of 36 per cent over the closing price on March 19.
Salesforce gets Access to Expertise to Develop Platforms across Applications, Data, and Devices
Salesforce believes that the acquisition will give it access to users’ data across cloud systems. Utilizing Mulesoft’s profound expertise, the company will be able to develop networks spanning disparate applications, data, and devices. This is the same thing the network software maker has been doing with Fortune 500 companies. Mulesoft went public almost a year ago on the New York Stock Exchange and since then has been high on the list of Salesforce’s M&A deals.
Acquisition enable Salesforce to Bolster Cloud Platforms with Integrated Data
The two companies will enable their customers a way to stich through all information across the enterprise resting on all data sources, notably public and private cloud. Salesforce is making giant stride with its developmental initiatives in enterprise-wide products and services and the acquisition will give it a competitive edge, specifically through an API integration engine. Not only this, post the acquisition Salesforce will get a way to cater to the needs of a wide spectrum of customers with the likes of the Coca-Cola Company, General Electric, AT&AT, and Accenture. This bodes well for the lofty revenue goals harbored by the company.