With their second acquisition in 2 weeks (See Cloudcraze), Salesforce has just announced they will be acquiring Mulesoft for close to $6.5 Billion. This is Salesforce’s biggest acquisition ever and is nearly double their previous record of acquiring Demandware for $2.8 Billion
Mulesoft is based out of San Francisco, and provide an integration platform to connect on-premise systems and cloud products. Companies like Mulesoft are essential for businesses who are making the digital transformation leap to the cloud, as usually there will be legacy systems in the mix that need to be connected to Salesforce or other SaaS products. Mulesoft started off by offering middleware to connect back-office systems and later expanded to iPaaS (Integration Platform As a Service). They have had a longstanding relationship with Salesforce and is often seen sponsoring Dreamforce and their World Tour events around the globe. Salesforce Ventures also led a $128 Million investment round back in 2015, just before Mulesoft went public last year.
“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.”
Mulesoft has been purchased to create an additional Salesforce Cloud, the Integration Cloud. As mentioned above, the majority of large-scale Salesforce implementation projects will require some integration with back office or legacy system, Salesforce no longer need to rely on partners to offer this service.
Mulesoft already has an impressive array of enterprise customers including Mastercard, Barclays, Airbus and Accenture. One would assume that Salesforce will aim to provide this service to a similar market, but I think there could be huge potential in the SMB and midmarket as well depending on price point, it will also be interesting to see if the Integration Cloud will interact with Salesforce Connect.
- Mulesoft had one of the best tech IPO’s last year, soaring 45% in it’s first day of trading (Beating snapchat)
- They have over 1,100 employees that will be joining Salesforce from over 12 countries
- Last year revenues were just below £300M
- in 2016, Mulesoft was ranked £20 on Forbes Cloud 100 list