Salesforce Acquires Field Service Firm ClickSoftware

Salesforce Acquires Field Service Firm ClickSoftware
August 9, 2019

 

Just days after completing the massive $15.7 billion Tableau deal, US cloud computing company Salesforce.com, inc. (NYSE: CRM) announced that it has acquired field service software enterprise ClickSoftware in a cash and stock deal worth $1.35 billion. Salesforce has stated that the acquisition of privately held ClickSoftware would enable the company to turn into a leader in the field service software sector. At the time of writing this article, the stock is trading flat at $143.15, down $0.67 or -0.46% from the prior close.

The acquisition is anticipated to assist Salesforce to challenge Microsoft, the public company with a market valuation of $1.083 trillion.  Notably, Microsoft took over field service software enterprise FieldOne in 2015. ClickSoftware, being the world’s largest service management enterprise, assists hundreds of utility firms, fire and police departments, and emergency support organizations to line up orders, renovations and urgent aids correctly.

Other prominent industries which use ClickSoftware’s platform include airlines, hospitals, railroads, and even retailers. The software firm offers all necessary tools to manage personnel and create schedules in a streamlined manner. With ClickSoftware’s platform, companies will be able to set appointments for service executives with clients and assist managers in going into the field by offering a complete suite of apps for smartphones and tablets.

ClickSoftware, established in 1997, has 829 (according to LinkedIn) people on its payroll, with nearly 200 of them stationed in Israel. The staff in Israel is anticipated to become part of Salesforce’s employees. In 2015, ClickSoftware, which had its headquarters in Petah Tikvah, was taken private through an acquisition by Francisco Partners Management, an investment firm headquartered in California, for $438 million. The company has its head office at Burlington, Massachusetts. Some of the prominent clients of ClickSoftware include Bosch and Vodafone.

Commenting on the acquisition, Mark Cattini, CEO of ClickSoftware, said “Our mission has been clear since the beginning—to be the global leader in field service management and deliver significant value to our customers. Joining Salesforce provides a tremendous opportunity to accelerate this vision. As a part of Salesforce, we will be able to innovate faster, enabling our joint customers to deliver even better experiences to their customers. This is an exciting milestone, and I look forward to what we’ll deliver to our respective customers as one company after close.”

As mentioned earlier, the deal has come two months after Salesforce took over data visualization software enterprise Tableau for over $15 billion. Salesforce currently offers tools related to field service, including software that keeps track of employees who are going out to carry out maintenance for clients.

Salesforce issued the following statement to explain the value addition which ClickSoftware’s acquisition will bring about: “The addition of ClickSoftware will enhance Salesforce Service Cloud’s leadership as the #1 service platform, empowering every service employee from the contact center to the field to deliver more connected, intelligent customer service.”

Salesforce also elaborated on how the acquisition of ClickSoftware will enable the former to lead field service business. “Salesforce Field Service Lightning, built on Service Cloud, harnesses the latest in dispatching, mobile workforce empowerment and IoT technologies to empower companies to connect their entire service workforce on a single, centralized platform. With the combined capabilities of Field Service Lightning and ClickSoftware, Salesforce will be positioned to lead the way to the future of field service.”

The acquisition is anticipated to receive a positive response from the market. Technically, the stock of Salesforce remains range-bound between 140 and 160. The stochastic oscillator is near the oversold region, while the stock has successfully tested its lower level of the trading range. As a result, we can expect the stock to bounce back in the days to come.

crm - technical analysis - 9th Aug 2019

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Janine

Janine

Janine is our editor for related stock market news. Andrew and Janine will be focusing on providing the latest trends and where the next hit could be


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