We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What Is MuleSoft, and Why Does Salesforce Want to Buy It?
Read MoreHide Full Article
Shares of integration software maker MuleSoft soared more than 20% in early afternoon trading Tuesday after news reports suggested that it was in advanced talks to be acquired by cloud computing giant Salesforce (CRM - Free Report) .
Citing people familiar with the matter, Reuters said Tuesday that Salesforce is interested in buying MuleSoft in order to bolster its offerings beyond customer relations software. The deal could be worth up to $6 billion and would represent Salesforce’s largest acquisition ever, the report said.
Reuters also mentioned that the move would underscore Chief Executive March Benioff’s desire to supplement his company’s cloud-based solutions with new technology. The publication’s sources said that the deal could be announced as soon as this week, although an agreement is not yet certain.
What Is MuleSoft?
MuleSoft designs platforms for connecting applications, data, and devices. The company’s “Anypoint” technology was described as a “disruptive” force within the enterprise software market in a recent note from analysts at Nomura.
“With a large potential TAM and product capabilities well ahead of the competition, MULE is poised to continue to gain share against the legacy incumbents in the integration software market,” the analysts said.
Based in San Francisco, MuleSoft has already attracted interest from Salesforce in the past. Salesforce Ventures, the cloud firm’s venture capital wing, led a $128 million funding round for the software company back in 2015.
MuleSoft claims more than 1,000 customers, including major clients like Coca-Cola (KO - Free Report) , McDonald’s (MCD - Free Report) , and Spotify. MuleSoft’s solutions help companies’ own networks run faster, making them ideal for businesses that are not yet prepared for a full transition to the cloud.
Why Does It Matter?
Salesforce currently claims about 18% of the global CRM software market, but the company likely senses that its strongest growth potential lies outside of its current area of expertise. As companies of all shapes and sizes prepare for the next generation of technology, firms like MuleSoft—which promise to make this evolution more painless—should be extremely beneficial.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeneyon Twitter!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
What Is MuleSoft, and Why Does Salesforce Want to Buy It?
Shares of integration software maker MuleSoft soared more than 20% in early afternoon trading Tuesday after news reports suggested that it was in advanced talks to be acquired by cloud computing giant Salesforce (CRM - Free Report) .
Citing people familiar with the matter, Reuters said Tuesday that Salesforce is interested in buying MuleSoft in order to bolster its offerings beyond customer relations software. The deal could be worth up to $6 billion and would represent Salesforce’s largest acquisition ever, the report said.
Reuters also mentioned that the move would underscore Chief Executive March Benioff’s desire to supplement his company’s cloud-based solutions with new technology. The publication’s sources said that the deal could be announced as soon as this week, although an agreement is not yet certain.
What Is MuleSoft?
MuleSoft designs platforms for connecting applications, data, and devices. The company’s “Anypoint” technology was described as a “disruptive” force within the enterprise software market in a recent note from analysts at Nomura.
“With a large potential TAM and product capabilities well ahead of the competition, MULE is poised to continue to gain share against the legacy incumbents in the integration software market,” the analysts said.
Based in San Francisco, MuleSoft has already attracted interest from Salesforce in the past. Salesforce Ventures, the cloud firm’s venture capital wing, led a $128 million funding round for the software company back in 2015.
MuleSoft claims more than 1,000 customers, including major clients like Coca-Cola (KO - Free Report) , McDonald’s (MCD - Free Report) , and Spotify. MuleSoft’s solutions help companies’ own networks run faster, making them ideal for businesses that are not yet prepared for a full transition to the cloud.
Why Does It Matter?
Salesforce currently claims about 18% of the global CRM software market, but the company likely senses that its strongest growth potential lies outside of its current area of expertise. As companies of all shapes and sizes prepare for the next generation of technology, firms like MuleSoft—which promise to make this evolution more painless—should be extremely beneficial.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>