Salesforce's pricey MuleSoft deal could force rivals to pay up for cloud software companies

Salesforce's pricey MuleSoft deal could force rivals to pay up for cloud software companies

6 years ago
Anonymous $gIi3-PxxKB

https://www.cnbc.com/2018/03/21/salesforce-mulesoft-deal-could-raise-saas-price-tags.html

Salesforce's $6.5 billion acquisition of MuleSoft was the most expensive cloud software deal in history, according to some analysts, and could raise the price for future transactions.

According to a report on Wednesday from analysts at JMP Securities, the purchase price implies an enterprise value to revenue multiple of 15.8 for 2018 and 11.9 for 2019. That tops a multiple of 9.1 that SAP paid for Concur in 2014 and is more than twice the median multiple for cloud software companies of 5.3 dating back to at least 2012.

Salesforce's pricey MuleSoft deal could force rivals to pay up for cloud software companies

Mar 21, 2018, 10:15pm UTC
https://www.cnbc.com/2018/03/21/salesforce-mulesoft-deal-could-raise-saas-price-tags.html >Salesforce's $6.5 billion acquisition of MuleSoft was the most expensive cloud software deal in history, according to some analysts, and could raise the price for future transactions. >According to a report on Wednesday from analysts at JMP Securities, the purchase price implies an enterprise value to revenue multiple of 15.8 for 2018 and 11.9 for 2019. That tops a multiple of 9.1 that SAP paid for Concur in 2014 and is more than twice the median multiple for cloud software companies of 5.3 dating back to at least 2012.