Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Salesforce to buy Israel's ClickSoftware for $1.35 billion

Published 08/08/2019, 08:30 AM
Updated 08/08/2019, 08:30 AM
© Reuters. The company logo for Salesforce.com is displayed on the Salesforce Tower in New York

© Reuters. The company logo for Salesforce.com is displayed on the Salesforce Tower in New York

By Steven Scheer

JERUSALEM (Reuters) - U.S. cloud-based service provider Salesforce (N:CRM) agreed to buy U.S.-Israeli software developer ClickSoftware for $1.35 billion in cash and shares, in a bid to accelerate growth of its cloud-based products to manage customer service operations.

The deal comes a week after Salesforce completed its more than $15 billion purchase of data analytics firm Tableau.

The deal came about after the two companies worked together for three years, said Elad Donsky, vice president of engineering at Salesforce Israel.

ClickSoftware makes cloud-based field service management software - which tracks and manages technicians and employees who work outside office locations - for customers like Bosch, Deutsche Telekom (DE:DTEGn) and Ericsson (BS:ERICAs).

"This is just the start of innovation on this," Donsky told Reuters, referring to the field service management software sector.

This is the second major deal by Salesforce in Israel since July 2018 when it paid $850 million for Datorama, a cloud-based artificial intelligence marketing platform that makes up one of Salesforces's two research and development facilities in Israel.

The ClickSoftware deal would bring the number of employees at Salesforce in Israel to above 600, Donsky said.

"Salesforce will continue to invest in Israel," he said. "Israel is now a strategic R&D hub for the company so we are going to see more growth in the coming years."

U.S. private equity firm Francisco Partners bought ClickSoftware in 2015 for $438 million.

Salesforce said its offer was net of the value of shares it already owns, after taking into consideration estimated purchase price adjustments.

© Reuters. The company logo for Salesforce.com is displayed on the Salesforce Tower in New York

The acquisition is expected to close during Salesforce's fiscal quarter ending Oct. 31 pending various approvals.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.