SAN FRANCISCO — A global customer relationship managment company a leading provider of one of the world’s leading platforms for building application networks have entered an acquisition agreement.
Salesforce will acquire MuleSoft for an enterprise value of approximately $6.5 billion.
“Every digital transformation starts and ends with the customer,” said Salesforce Marc Benioff. “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.”
MuleSoft CEO Greg Schott echoed Benihoff, calling the deal a tremendous opportunity.
“Together, Salesforce and MuleSoft will accelerate our customers’ digital transformations enabling them to unlock their data across any application or endpoint,” Schott said.
MuleSoft provides one of the world’s leading platforms for building application networks that connect enterprise apps, data and devices, across any cloud and on-premise. More than 1,200 customers, including Coca-Cola, Barclays, Unilever and Mount Sinai, rely on MuleSoft to change and innovate faster, deliver differentiated customer experiences, and increase operational efficiency.
Together, Salesforce and MuleSoft will accelerate customers’ digital transformations, enabling them to unlock data across legacy systems, cloud apps and devices to make smarter, faster decisions and create highly differentiated, connected customer experiences.
MuleSoft will continue to build toward the company’s vision of the application network with Anypoint Platform, and MuleSoft will power the new Salesforce Integration Cloud, which will enable all enterprises to surface any data—regardless of where it resides—to drive deep and intelligent customer experiences throughout a personalized 1:1 journey.
As part of the world’s #1 CRM company and fastest growing top 5 enterprise software company, MuleSoft will be able to accelerate its growth and deliver even more innovation to its customers at scale.
The boards of directors of Salesforce and MuleSoft have unanimously approved the transaction.
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. The per share price represents a 36% premium over MuleSoft’s closing share price on March 19.
Under the terms of the transaction, Salesforce will commence an exchange offer to acquire all the outstanding shares of MuleSoft. The transaction is expected to close in the second quarter of Salesforce’s fiscal year 2019, ending July 31, subject to the satisfaction of customary closing conditions, including the tender by MuleSoft stockholders of shares representing a majority of the MuleSoft common stock voting power, on a one-vote per share basis, and the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
Salesforce expects to fund the cash consideration with cash from its balance sheet and approximately $3 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 billion bridge loan facility, subject to customary conditions. This transaction is not subject to any financing condition. N.