Salesforce to acquire application networks firm MuleSoft for $6.5 billion

Cloud based CRM firm Salesforce will acquire MuleSoft for an enterprise value of approximately $6.5 billion

Must Read

Israeli startup Coralogix raises $25 million in Series B funding

Israel-based startup Coralogix which deals in machine learning-powered log analytics and monitoring solution has raised $25 million in round, bringing the company's total amount raised to $41.2 million

Top 5 cyber threats CIOs need to be aware of in APAC region

COVID-19 pandemic has significantly impacted the of businesses and individuals worldwide. CIOs need to be aware of emerging challenges in the region.

ESDS awarded as India’s ‘Best Workplaces for Women 2020’

ESDS Software Solution said that it has been awarded as “India’s Best Workplaces for Women 2020” under the Top 50 category, certified by “Great Place to work” organization

Cloud based CRM firm Salesforce will acquire for an enterprise value of approximately $6.5 billion. MuleSoft provides platforms for building application networks that connect enterprise apps, data and devices, across any cloud and on-premise. MuleSoft has more than 1,200 customers, including Coca-Cola, Barclays, Unilever and Mount Sinai. The acquisition will help Salesforce to sale it services to companies seating on piles of legacy IT infrastructure.

Under the terms of the transaction, the MuleSoft acquisition consideration will be composed of $36.00 in cash and 0.0711 shares of Salesforce common stock per MuleSoft Class A and Class B common share, which represents a per share price for MuleSoft common shares of $44.89 based on the closing price of Salesforce common stock on March 19, 2018. The per share price represents a 36% premium over MuleSoft’s closing share price on March 19, 2018.

“Every digital transformation starts and ends with the customer,” said Marc Benioff, Chairman and CEO, Salesforce. “Together, Salesforce and MuleSoft will enable customers to connect all of the information throughout their enterprise across all public and private clouds and data sources—radically enhancing innovation. I am thrilled to welcome MuleSoft to the Salesforce Ohana.”

“With the full power of Salesforce behind us, we have a tremendous opportunity to realize our vision of the application even faster and at scale,” said Greg Schott, MuleSoft Chairman and CEO. “Together, Salesforce and MuleSoft will accelerate our customers’ digital transformations enabling them to unlock their data across any application or endpoint.”

Salesforce will commence an exchange offer to acquire all of the outstanding shares of MuleSoft. The transaction is expected to close in the second quarter of Salesforce’s fiscal year 2019, ending July 31, 2018. Salesforce said that stockholders of MuleSoft owning approximately 30% of the outstanding shares have entered into tender and support agreements with Salesforce.

Salesforce expects to fund the cash consideration with cash from its balance sheet and approximately $3.0 billion of proceeds from a combination of term loans and/or the issuance of debt securities. The relative mix of each will depend on prevailing market conditions. Salesforce has obtained a commitment from BofA Merrill Lynch for a $3.0 billion bridge loan facility, subject to customary conditions. This transaction is not subject to any financing condition.

Subscribe to receive the day's headlines from Tech Observer straight in your inbox

Leave a Reply

*The moderation of comments is automated and not cleared manually by techobserver.in. Embedding of any link and use of abusive or unparliamentary language are prohibited.
- Advertisement -

Latest in TECH

Israeli startup Coralogix raises $25 million in Series B funding

Israel-based startup Coralogix which deals in machine learning-powered log analytics and monitoring solution has raised $25 million in Series B funding round, bringing the company's total amount raised to $41.2 million
- Advertisement -SAP Hana

Related Articles