Salesforce acquires Vlocity an all-cash deal worth $1.33 billion

Customer relationship manager titan Salesforce acquires Vlocity, a provider of industry-specific cloud and CRM apps, for a reported $1.33 billion (£1.04bn).

The news was announced today in a press release to add an extra punch for the Salesforce end of the fourth-quarter update. Salesforce acquires Vlocity at a time where the company’s financial results witnessed a Q4 revenue up by 35% and were described by CEO Marc Benioff as ‘phenomenal’.

Benioff said to investors following the Q4 earnings report that Vlocity was a ”relatively small transaction” which is hard to disagree with when Salesforce has recently spent $15.7bn (£13.58bn) on visualisation software provider Tableau.

Benioff continued: “In our relationship with Vlocity and the way that we originally invested in the company, it created a situation for acquisition that we needed to take advantage of and which is why we have acquired it at a very attractive price because we have been partners with them from the very beginning,”

So, what does this acquisition mean for Salesforce and Vlocity going into the new decade? We’re not entirely sure, but one thing we would imagine is that they will no longer require to do any more funding rounds anytime soon.

Vlocity is a solution that is built and designed on the Salesforce platform and recently secured funding of $60 million in a Series C funding round in March 2019. The leading investments came from Salesforce Ventures, giving people the first sign that Salesforce was interested in the business.

Vlocity was placed in the top 25 companies of the Forbes Cloud 100 recent rankings report and was represented as the fastest-growing company in California according to the Inc. 500 series.

David Schmaier, CEO, Vlocity wrote to customers about the acquisition: “Every organisation, including the world’s largest customer-centric corporations and industries, must digitally transform,

“It is more important than ever for our customers to have products that speak the language of their industries.

“The best customer experiences are industry-specific. Together, our customers, our partners, and our employees have accomplished so much. I am thrilled about our future with Salesforce.”

Salesforce acquisition of Vlocity is expected to be wrapped up by the close of the second quarter.

About Salesforce

Salesforce.com, Inc. is an American cloud-based software company headquartered in San Francisco, California. It provides a customer-relationship management service and also sells a complementary suite of enterprise applications focused on customer service, marketing automation, analytics, and application development.

About Vlocity

Vlocity is a leading provider of industry-specific cloud and mobile software, driving digital transformation for the world’s largest companies. A three-time Forbes Cloud 100 winner, Vlocity is an “industry cloud” pioneer built in partnership with Salesforce, the world’s #1 CRM provider.