The move is particularly clever because it is a bet by Salesforce on how analytics and business intelligence (BI) will be made all the more potent through powerful data visualisations.
The value of "big data" has been underscored by Salesforce and the American technology company's biggest deal to date.
Companies of every size and industry are transforming how they do business in the digital age - customers and data are at the heart of those transformations. Vanguard Group Inc now owns 6,118,849 shares of the software company's stock valued at $683,720,000 after buying an additional 299,635 shares during the last quarter.
In each case, each of these three deals was the largest for the company at the time, and each subsequent deal has been multiples of the past record purchase.
Salesforce has looked at an acquisition of Tableau for years, as indicated in this leaked 2016 document published by the Wall Street Journal.
Where does the IBM/Red Hat deal fit in the context of global and U.S. software M&A - according to Mergermarket data.
"We are bringing together the world's No. 1 CRM with the No. 1 analytics platform".
The company officials confirmed that Seattle would become second official headquarters for Salesforce after the closure of this deal.
"Salesforce's incredible success has always been based on anticipating the needs of our customers and providing them the solutions they need to grow their businesses", remarked Keith Block, co-CEO of Salesforce. "Tableau helps people see and understand data, and Salesforce helps people engage and understand customers".
As a share of all the buildup mediation, Tableau shareholders will get your hands on 1.103 salesforce quota estimating the give at $177.88 per share constituting a premium of 42% to Tableau's Friday closing price.
Under the terms of the transaction, which has been approved by both companies' boards, Salesforce will commence an exchange offer to acquire all of the outstanding shares of Tableau, whose founders Christian Chabot, Patrick Hanrahan and Christopher Stolte have agreed to tender all theirs. The stock has a market cap of $10.79 billion, a price-to-earnings ratio of -52.48 and a beta of 1.19. Trading was halted last week following news of the company's acquisition.
The acquisition will decrease Salesforces non-GAAP operating margin for fiscal year 2020 by approximately 75 basis points year-over-year. Analysts were expecting $2.90 per share, according to IBES data from Refinitiv.
Following the announcement, Salesforce shares fell by 5 percent to $156.43 while Tableau's jumped by 35 percent to $169.50.