The acquisition was first reported by Reuters yesterday. In a news release today, Salesforce confirmed it is purchasing MuleSoft, a leading application network provider. The company is a natural fit with Salesforce’s own CRM platforms. Salesforce plans to use MuleSoft technology to develop new enterprise services.
MuleSoft currently has over 1,200 business customers who rely on its platform to integrate different applications. Firms including Barclays, Coca-Cola and Unilever use MuleSoft to connect their cloud services and enable data to flow seamlessly between different containers. MuleSoft helps companies to leverage their data by breaking down the siloes that can isolate different cloud environments.
MuleSoft started as an open-source project in 2003 when founder Ross Mason became frustrated by the lack of integration between different software services. In the years since, the company has grown into one of the most successful enterprise integration platforms. As reported by Business Insider, the company posted a 58% year-over-year increase in fiscal revenue in its earnings call last month.
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Salesforce will use MuleSoft’s technology to power its new Salesforce Integration Cloud platform. It’s a similar service to MuleSoft, designed to allow enterprises to stream data between services and obtain personalised insights. The new cloud is set to be a significant component of Salesforce’s ongoing push towards becoming a digital transformation enabler.
“Every digital transformation starts and ends with the customer,” said Marc Benioff, Chairman and CEO, Salesforce. “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.”
Salesforce is facing competition from companies including Microsoft and Google who are also vying for enterprise cloud dominance. The addition of MuleSoft’s technology to its portfolio will help make Salesforce a more attractive option to large corporations. As the data age progresses, the value of cloud networks is likely to be defined by their ability to surface insights from disconnected sources.
Salesforce will pay $44.89 per share to acquire MuleSoft. Trading in the company’s shares was temporarily halted after word of the acquisition caused the price to spike by over 27 percent. After trading resumed, MuleSoft was still up by around 21 percent. Salesforce is paying a 36% premium on the shares over MuleSoft’s closing price on Monday.