Salesforce (CRM) announced today a definitive agreement to acquire Tableau (DATA) with an all-stock transaction that corresponds to an EV of $15.7 billion.
The acquisition improves Salesforce's portfolio and offers obvious synergies. Salesforce will integrate Tableau's analytics capabilities into its CRM and middleware portfolio.
But the proposed transaction values Tableau at a high EV/TTM Sales ratio considering its revenue growth and its operating losses.
Let's discuss the potential operational benefits before getting into the details of the valuation.
Image source: Rawpixel via Pixabay