Salesforce To Buy MuleSoft

(RTTNews) - Salesforce (CRM), Tuesday said it has agreed to buy MuleSoft (MULE), the provider of building application networks' platform, for an enterprise value of about $6.5 billion.

Salesforce has agreed to pay $36.00 in cash and 0.0711 shares of Salesforce common stock per MuleSoft Class A and Class B common share. This gives MuleSoft a per share price of $44.89 based on the closing price of Salesforce stock on March 19. This deal gives MuleSoft a 36% premium over its closing share price on March 19.

The acquisition is expected to close in the second quarter of Salesforce's fiscal year 2019. Stockholders of MuleSoft owning about 30% of the outstanding shares have entered into tender and support agreements with Salesforce. The boards of directors of Salesforce and MuleSoft have unanimously approved the deal.

Salesforce expects to fund the cash consideration with cash from its balance sheet and about $3.0 billion of proceeds from a combination of term loans and/or the issuance of debt securities.

"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."

"With the full power of Salesforce behind us, we have a tremendous opportunity to realize our vision of the application network even faster and at scale," said Greg Schott, MuleSoft Chairman and CEO.