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Salesforce is buying data visualization company Tableau for $15.7B in all-stock deal

On the heels of Google buying analytics startup Looker last week for $2.6 billion, Salesforce today announced a huge piece of news in a bid to step up its own work in data visualization and (more generally) tools to help enterprises make sense of the sea of data that they use and amass: Salesforce is buying Tableau for $15.7 billion in an all-stock deal.

The latter is publicly traded and this deal will involve shares of Tableau Class A and Class B common stock getting exchanged for 1.103 shares of Salesforce common stock, the company said, and so the $15.7 billion figure is the enterprise value of the transaction, based on the average price of Salesforce’s shares as of June 7, 2019.

This is a huge jump on Tableau’s last market cap: it was valued at $10.79 billion at close of trading Friday, according to figures on Google Finance. (Also: trading has halted on its stock in light of this news.)

The two boards have already approved the deal, Salesforce notes. The two companies’ management teams will be hosting a conference call at 8am Eastern and I’ll listen in to that as well to get more details.

This is a huge deal for Salesforce as it continues to diversify beyond CRM software and into deeper layers of analytics.

The company reportedly worked hard to — but ultimately missed out on — buying LinkedIn (which Microsoft picked up instead), and while there isn’t a whole lot in common between LinkedIn and Tableau, this deal will also help Salesforce extend its engagement (and data intelligence) for the customers that Salesforce already has — something that LinkedIn would have also helped it to do.

This also looks like a move designed to help bulk up against Google’s move to buy Looker, announced last week, although I’d argue that analytics is a big enough area that all major tech companies that are courting enterprises are getting their ducks in a row in terms of squaring up to stronger strategies (and products) in this area. It’s unclear whether (and if) the two deals were made in response to each other, although it seems that Salesforce has been eyeing up Tableau for years.

“We are bringing together the world’s #1 CRM with the #1 analytics platform. Tableau helps people see and understand data, and Salesforce helps people engage and understand customers. It’s truly the best of both worlds for our customers–bringing together two critical platforms that every customer needs to understand their world,” said Marc Benioff, chairman and co-CEO, Salesforce, in a statement. “I’m thrilled to welcome Adam and his team to Salesforce.”

Tableau has about 86,000 business customers, including Charles Schwab, Verizon (which owns TC), Schneider Electric, Southwest and Netflix. Salesforce said Tableau will operate independently and under its own brand post-acquisition. It will also remain headquartered in Seattle, Wash., headed by CEO Adam Selipsky along with others on the current leadership team.

Indeed, later during the call, Benioff let it drop that Seattle would become Salesforce’s official second headquarters with the closing of this deal.

That’s not to say, though, that the two will not be working together.

On the contrary, Salesforce is already talking up the possibilities of expanding what the company is already doing with its Einstein platform (launched back in 2016, Einstein is the home of all of Salesforce’s AI-based initiatives); and with “Customer 360,” which is the company’s product and take on omnichannel sales and marketing. The latter is an obvious and complementary product home, given that one huge aspect of Tableau’s service is to provide “big picture” insights.

“Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data,” said Selipsky. “As part of the world’s #1 CRM company, Tableau’s intuitive and powerful analytics will enable millions more people to discover actionable insights across their entire organizations. I’m delighted that our companies share very similar cultures and a relentless focus on customer success. I look forward to working together in support of our customers and communities.”

“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,” said Keith Block, co-CEO, Salesforce. “Data is the foundation of every digital transformation, and the addition of Tableau will accelerate our ability to deliver customer success by enabling a truly unified and powerful view across all of a customer’s data.”

KeepTruckin, a developer of hardware and software that helps truck drivers manage their vehicles and cargo, has raised $149 million in Series D funding. Greenoaks Capital has led the round, with participation from existing backers GV, IVP, Index Ventures and Scale Venture Partners .

The round values the business at $1.25 billion, according to KeepTruckin co-founder and chief executive officer Shoaib Makani.

Since it was founded in 2013, KeepTruckin has accumulated 55,000 unique customers, deploying its software in hundreds of thousands of vehicles. The San Francisco-headquartered company will use the latest investment to double its employee headcount to 2,000 in the next 12 to 18 months.

“Our technology really improves the life of the driver,” Makani told TechCrunch. “These are real people doing work that keeps our economy moving. Trucking is really the foundation of the American economy. More than 70 percent of all freight is moved over the road in a truck. This is how we eat, consume and produce; without it, our economy wouldn’t thrive.”

The Series D financing brings KeepTruckin’s total raised to $228 million, including a $50 million Series C that closed in March 2018.

KeepTruckin’s software is intended to bring the antiquated trucking industry into the digital age. Its platform provides electronic logs and fleet management tools, including GPS tracking and driver performance monitoring for fleet managers and dispatchers to track and communicate with their drivers.

“We are competing against paper and pencil,” Makani explained.

Makani left Khosla Ventures, where he had been an investor in early-stage consumer and enterprise companies since 2011, in 2013 to build KeepTruckin. At the time, the beginnings of a new sector focused on tech-enabled logistics was beginning to emerge. Since then, several companies have launched and scaled with similar focuses.

There’s Convoy in Seattle, for example, which also operates a network of connected-trucks. Uber Freight, the logistics and supply chain management business inside Uber. And Huochebang, a Chinese mobile app dubbed the “Uber-for-Trucks.”

“Trucking is forecasted to be a $1 trillion industry by 2024 and is the backbone of the global economy, yet has been underserved by technology but change is coming and KeepTruckin is at the leading edge,” Greenoaks managing partner Neil Mehta said in a statement. “KeepTruckin is building the technology that trucking companies need to compete in the modern economy. The network that KeepTruckin has built will enable it to change the way freight is moved on our roads.”

On-demand trucking app Convoy raises $185M at $1B valuation

CapitalG, the growth equity arm of Alphabet, has led the $185 million round in Convoy, its first investment in the Seattle-based, tech-enabled trucking network.

The round brings Convoy’s total raised to $265 million and values the company at $1 billion. New investors T. Rowe Price and Lone Pine Capital participated in the financing alongside existing investors.

Convoy has long been backed by Greylock Partners, which led the startup’s Series A in 2015. Y Combinator is also a backer. In an unusual move last year, Y Combinator led a $62 million round in Convoy in what was the first time the accelerator deployed capital from its continuity fund into a late-stage company that was not a YC graduate.

Salesforce CEO Marc Benioff, Dropbox CEO Drew Houston, Bezos Expeditions and former Starbucks president Howard Behar are also Convoy investors.

Founded by a pair of former Amazonians, Dan Lewis and Grant Goodale, Convoy is trying to transform the $800 billion trucking industry, which is no easy feat. Dubbed the ‘Uber for trucks,’ Convoy’s app connects truckers with people who need freight moved. With the new funding, it’ll expand nationwide and move beyond just freight matching.

“Trucks run empty 40% of the time, and they often sit idle due to inefficient scheduling,” Convoy CEO Dan Lewis said in a statement. “This is a drag on the economy, the environment, and the bottom lines of shippers and carriers alike.”

According to GeekWire, Convoy is working on a new suite of tools to help truckers combine tasks so they waste less time. And it’s working to provide shippers access to tracking and pricing data through its platform.

As part of the deal, CapitalG partner David Lawee will join Convoy’s board of directors.

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