Salesforce.com Inc agreed on Monday to buy big data firm Tableau Software Inc for $15.3 billion, adding muscle in its fight with Microsoft Corp for a bigger share of the market that helps businesses target customers with tools to analyze and visualize data.
Coatue Management LLC now owns 2,412,405 shares of the software company's stock valued at $289,489,000 after purchasing an additional 934,635 shares during the last quarter.
The Salesforce-Tableau deal is expected to be finalised later this year.
In the statement, both vendors also noted their community of users - 1.4 million Trailblazers on the Salesforce side, and 1 million data enthusiasts on Tableau's.
"The acquisition accelerates Salesforce's roadmap for (its) Customer 360 initiative, which helps companies gain a complete view of their customers, and more broadly their analytics initiative", Koenig said.
Salesforce said Tableau would operate independently, led by current CEO Adam Selipsky and Tableau's executive team.
The takeover of Tableau is Salesforce's largest acquisition to date and will play a key role in the company's ambition to reach an annual revenue goal of up to $28bn by 2023.
Under the definitive agreement, Salesforce will acquire Tableau in an all-stock transaction, with 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 US$15.7 billion (net of cash). "As part of the world's #1 CRM company, Tableau's intuitive and powerful analytics will enable millions more people to discover actionable insights across their entire organisations".
Companies of every size and industry are transforming how they do business in the digital age - customers and data are at the heart of those transformations.
Shares of Tableau Software Inc. jumped 34.1% in morning trading on Monday.
The transaction is expected to increase Salesforce's fiscal 2020 total revenue by about $350 million to $400 million. Forbes columnist and venture capitalist Peter Cohan, for example, contended that Palo Alto-based startup, ThoughtSpot, would have made a better acquisition for Salesforce because "it was growing much faster than Tableau" to a point where "it was taking business from Tableau".
"I expect the focus on data visualisation and related tools will continue to drive competitive investments, but large-scale acquisition is not the only strategy to watch".