California based cloud-based service provider Salesforce is poised to buy the privately held US-Israeli software company ClickSoftware for $1.35 billion. The estimated value is a combination of both cash and shares.
Salesforce is owned by a private equity firm – Francisco Partners. It was established in 1999 by Marc Benioff and Parker Harris but it was sold for $438 million back in 2015 and delisted from the Nasdaq. Its main office is in San Francisco, California but it has regional headquarters in countries like Switzerland, India, and Japan. It also has offices in several major cities around the world. The software company currently has around 35,000 employees across the globe.
ClickSoftware Technologies is a privately held company that is based in both the US and Israel. It currently has offices in North America, EMEA, and APAC. It is considered as the largest service management company in the world, servicing a variety of industries, businesses, and utilities. It houses around 700 employees including about 200 based in its Petra Tikvah, Israel office.
Reports of Salesforce acquiring ClickSoftware was made by Israeli media back in January 2019. The acquisition news comes after Salesforce completed its purchase of Tableau for $15.7 billion. Tableau is a data analytics firm based in Seattle. This deal brought together the leading Customer Relations Management (CRM) and analytics platforms in the world.
According to Salesforce, the deal with ClickSoftware would propel it to become a leading name in the field service software industry. The acquisition is expected to be done at the ending of Salesforce’s fiscal quarter set on October 31.
The deal between the two companies is not the first time that they would be working together. According to the vice president of engineering at Salesforce Israel Elad Donsky, the companies have been working together for three years.
With Salesforce Service Cloud hailed as the leading service platform, adding ClickSoftware would strengthen the delivery of intelligent and connected customer service by the service employees of the companies and businesses who have procured their products and services.
According to the EVP and GM of Salesforce Service Cloud, the “acquisition of ClickSoftware will not only accelerate the growth of Service Cloud, but drive further innovation with Field Service Lightning to better meet the needs of our customers. We are thrilled to welcome the ClickSoftware team to Salesforce.”
In a press release, the CEO of ClickSoftware Mark Cattini had this to say about the deal “With the acquisition, this would fulfill the aim of being able to deliver exceptional field service to companies across various industries “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.”
He also added that “As a part of Salesforce, we will be able to innovate faster, enabling our joint customers to deliver even better experiences to their customers. This is an exciting milestone, and I look forward to what we’ll deliver to our respective customers as one company after close.”
When the deal closes, it would reinforce Salesforce’s presence in Israel. Since entering the Israeli market back in 2011, Salesforce has managed to acquire six companies in the country.
The last two acquisitions were made in the past two years. Salesforce acquired Datorama which is an AI-powered marketing intelligence platform in July 2018. The cloud-based artificial intelligence marketing platform was purchased for $850 million. The purchase of this platform allows Salesforce to be at the forefront of the AI-driven analytics niche and ahead of its competitors.
In May 2019, Salesforce bought the Tel-Aviv based Bonobo for an undisclosed amount. The 2017 founded start-up has a conversational intelligence platform that uses AI to centralize fragmented customer interaction data.
With its previous acquisitions in Israel and its current deal with ClickSoftware, Salesforce reinforces its strong and steady R & D presence in Israel. It is further strengthened by its investment in 12 local companies in the country, making Israel a growing R & D hub for Salesforce.
Salesforce is also expected to expand its portfolio in Israel. Apart from its latest deal with ClickSoftware, its venture arm Salesforce Venture has launched a $125 million fund that would support cloud start-ups in the European, Middle Eastern and African regions.