Venture Capital: Salesforce Snaps Up CRM Startup Vlocity For $1.33B
The deal was inevitable, analysts say.
Vlocity builds CRM systems that are industry-specific, cloud and mobile-based, and run on the Salesforce platform. Vlocity’s industry solutions are communications, media and entertainment, insurance and financial services, health, energy and utilities, and government and nonprofits. (TechCrunch)
The startup raised $163 million at a valuation of $1 billion in a Series C in March 2019. Notably, Salesforce Ventures was already an investor in Vlocity, along with Bessemer Venture Partners, Accenture, Salesforce Ventures, New York Life Investment Management, and Sutter Hill Ventures.
The announcement, therefore, put to rest months of speculation that a deal was in the works.
Ray Wang, founder, and principal analyst at Constellation Research approved of the deal. He said Salesforce got the industry platforms they needed. “More importantly, it keeps Google from buying them and [could generate] $10 billion in additional industries revenue growth over the next four years,” he added.
Deep domain experience in six industries
“The technology innovation we have created is remarkable – together we have delivered 24 cloud software releases across our six industries in less than six years,” David Schmaier, CEO & Founder, Vlocity, said in a blog.
The acquisition gives Salesforce Vlocity’s workforce – 1,000 employees with excellent industry experience and knowledge.
Therefore, Salesforce is confident that it can further penetrate these industries. It can, therefore, focus on developing CRM solutions for other industries and sectors.
Keith Block, Salesforce co-CEO, is stepping down
Salesforce also said that Keith Block is stepping down as Salesforce Co-CEO. Further, Marc Benioff is Chair and CEO of the company, with Block remaining as Advisor to the CEO.
“It’s been my greatest honor to lead the team with Marc that has more than quadrupled Salesforce from $4 billion of revenue when I joined in 2013 to over $17 billion last year,” said Block.
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