Salesforce is in advanced discussions to acquire US software maker MuleSoft as it looks to expand its offerings beyond customer relationship management software.
The acquisition, which sources familiar with the matter said could be worth more than US$6 billion, would be Salesforce’s biggest ever deal, illustrating chief executive Marc Benioff’s push to supplement the company’s cloud-based portfolio with new technology.
A deal could be announced as soon as this week, the sources said, cautioning that negotiations had not been finalised and that an agreement was not certain.
The sources asked not to be identified because the negotiations are confidential. Salesforce and MuleSoft declined to comment.
Based in San Francisco, MuleSoft makes software that automatically integrates disparate data, devices and applications to help companies’ networks run faster. It could help Salesforce win business from customers which are not yet ready to transition their systems to the cloud.
Buying MuleSoft would help Salesforce build a larger enterprise apps ecosystem around its own products, Barclays analysts wrote in a research note, adding that MuleSoft could command a premium given its rapid growth and good fit.
Salesforce Ventures, the company’s venture capital arm, led a US$128 million funding round in MuleSoft in 2015.
MuleSoft has more than 1000 customers, including Coca-Cola, McDonald’s, Spotify and Unilever. It went public about a year ago.
Salesforce holds more than 18 percent of the global customer relationship management software market, followed by Oracle with 9.4 percent, according to 2016 figures provided by research firm IDC.
Google acquired a competitor of MuleSoft called Apigee in a US$625 million deal in 2016.
Salesforce has benefited from companies switching to cloud-based services due to the lower costs and high level of scalability. Last month, it posted a quarterly profit that topped Wall Street targets, fueled by growth in its cloud-based sales and marketing software.