Salesforce’s $1.35bn Acquisition of ClickSoftware

By Harvey George, Niclas Hallberg and Samuli Karjalainen (LSE) - Date: 31/10/2019

 

Overview of the deal 

  • Acquirer: Salesforce.com, Inc.

  • Target: ClickSoftware Technologies Ltd.

  • Estimated value:  $1.35bn

  • Announcement date: 7th August 2019

  • Acquirer Advisors: N/A

  • Target Advisors: Goldman Sachs


In early August, Salesforce.com, a US-based SaaS company focusing on CRM, made public their intent to acquire ClickSoftware, a US-Israeli mobile workforce management solution provider, bringing to an end the rumours circulating in the media. The consideration of $1.35bn comprises of a mixture of cash and Salesforce common shares. 


The deal, which closed in the beginning of October 2019, represents the next chapter in the long list of Salesforce acquisitions. The deal was announced just days after closing the Salesforce’s largest ever transaction, $16bn acquisition of data analytics and visualization firm Tableau.


Salesforce has historically been very active player in M&A, having completed 60+ acquisitions, of which 6 have been this year. Salesforce continues to be a pioneer of an inorganic growth strategy within the ERP industry. The fast pace of acquisitions and wide range of target company sectors set exceptional requirements for the product development and post-merger integration processes.


“Our mission has been clear since the beginning - to be the global leader in field service management and deliver significant value to our customers. Joining Salesforce provides a tremendous opportunity to accelerate this vision” 

- Mark Cattini, CEO of ClickSoftware



Company Details (Acquirer - Salesforce) 

Salesforce (NYSE:CRM) is a US-based international software corporation which provides Customer Resource Management (CRM) solutions for enterprises. Additionally, Salesforce sells data analytics, automation and other complementary software applications.


- Founded in 1999

- President and Co-CEO: Marc Benioff, Co-CEO: Keith Block

- Number of employees: 35,000


- Market Cap: $126.4bn - EV:  $126.4bn

- LTM Revenue: $14.7bn - LTM EBITDA: $2.1bn

- LTM EV/Revenue: 8.6x - LTM EV/EBITDA: 60.2x


Company Details (Target - ClickSoftware) 

ClickSoftware is US-Israeli enterprise software company providing resource management, task scheduling and customer service tool solutions. Following its delisting from Nasdaq in 2015, ClickSoftware has been owned by San Francisco-based private equity firm Francisco Partners.


- Founded in 1997

- CEO: Mark Cattini

- Number of employees: 800