On Wednesday, cloud platform provider Salesforce announced it would acquire field service management firm ClickSoftware for $1.35 billion. The corporation is likely making the purchase to compete with market leader Microsoft. The transaction is the latest example of Salesforce’s strategy of expanding its service offerings via acquisitions.
ClickSoftware Purchase Details
Prior to its acquisition, ClickSoftware provided its customers with a host of field service management solutions. With its products, companies could schedule, dispatch, and track their staffers and gain predictive analytics based on their on the ground performance. It also offered communication tools to help businesses improve customer satisfaction. Moreover, the company’s platform also gave partner organizations the ability to precisely forecast service demand.
Crunchbase estimated ClickSoftware generated $126.2 million in annual revenue. The firm counted German engineering company Bosch and European telecommunications firm Vodafone as clients.
By purchasing the firm, Salesforce can use its technologies to improve the capability of its field service management segment. In June, the corporation revealed that division generated $1 billion in its fiscal first quarter of 2020 financial results.
In a press release, Salesforce said its purchase of ClickSoftware would allow it to “lead the way in the future of field service.”
MarketWatch predicts the global field service market will be worth $5.59 billion by 2023.
Notably, Salesforce’s new acquisition comes on the heels of the closure of the biggest purchase in its history. On August 1, the corporation announced it closed the purchase of data visualization firm Tableau. In June, the enterprise platform company revealed plans to buy its new subsidiary for $15.7 billion. The firm’s announcement caught industry analysts by surprise. Typically, transactions of that size usually take six months or more to gain regulatory approval.
Salesforce bought Tableau to expand its enterprise analytics service offerings. Tableau’s platform gave its customers the ability to collate their data and see it represented visually. By doing so, the firm’s products empower its clients to gain critical insights into the function of their operations. Using Tableau’s products, Verizon cut customer support call times by 43 percent and helped Lufthansa reduce its data preparation time by 30 percent.
With its track record, Tableau will likely help Salesforce dominate the global data visualization market, which is forecasted to reach $7.76 billion in value in four years.
In addition, last year, the corporation spent $6.5 billion to buy integration software retailer MuleSoft. The firm’s products help corporations establish secure application networks built with the custom APIs. Before being acquired by Salesforce, the company had partnerships with Netflix, Coca-Cola, and HSBC.
Admittedly, it’s a risky proposition for a corporation worth $127.42 billion to spend $22.55 billion in 17 months on acquisitions. But having done so, Salesforce has laid the groundwork to become a full-service enterprise support platform. If it’s big bets pay off, the corporation will become a real rival to Microsoft and Oracle.