Salesforce.com, Inc. (NYSE:CRM) has announced the acquisition of business intelligence and analysis firm, BeyondCore.
Salesforce had the option of looking for an appropriate firm to buy among a series of intelligence companies but BeyondCore was ideal because its platforms were already integrated. This made the decision much easier for Salesforce because it meant that Salesforce would not have to start from scratch. BeyondCore CEO Arijit Sengupta stated that his company decided to showcase its integration into Salesforce as part of the company’s release of the BeyondCore 7.
The corporate development team at Salesforce has so far brought more than 8 companies on board through acquisitions. The $750 million acquisition of Quip had captured the attention of Microsoft Corporation (NASDAQ:MSFT). This is because the acquisition places Salesforce within Microsoft’s territory. However, it is not clear whether the acquisition of BeyondCore will mean that the latter will be fully absorbed into Salesforce or whether it will still have separate operations. Sengupta, however, pointed out that his firm will continue to offer its creative and innovative technology to its clients as part of Salesforce, and that it will also deliver the same level of quality expected by customers.
Sengupta founded the firm in 2004 and in 2014 he managed to secure $9 million in financing from Menlo Ventures. The timing of the deal is ideal because Silicon Valley has been experiencing a lot of mergers and acquisition activity. The numerous acquisitions are yet to translate to higher revenue numbers. Some analysts believe that this is because there has been lower valuations and necessary exits. It is, however, necessary to note that not every acquisition will fit into the game plan.
The value of the deal is yet to be revealed and the two firms have turned down requests for comments for the details of the deal. It is therefore not clear whether the deal will allow Salesforce to be more competitive with Microsoft.