Enterprise software producer Salesforce agreed yesterday to acquire one of its portfolio companies, US-based customer relationship management (CRM) software provider Vlocity, for $1.33bn in cash.
The transaction will include the company assuming unvested equity awards held by Vlocity’s employees, and the price was described as net of the value of shares currently owned by Salesforce.
The acquisition is expected to close in 2021 and professional services firm Accenture and insurance provider New York Life will also exit through the deal.
Founded in 2014, Vlocity has created a range of CRM apps that fit on top of the Salesforce platform but which are tailored for specific industries such as communications, media and entertainment, energy and utilities, healthcare and insurance, in addition to government work.
The company had raised $163m in funding and was valued at $1bn its last round, a $60m series C in March 2019 that was co-led by Salesforce unit Salesforce Ventures and Sutter Hill Ventures with backing from Accenture, New York Life and Bessemer Venture Partners.
Sutter Hill Ventures led Vlocity’s $50m series B round in 2016, investing with Salesforce Ventures, New York Life, Accenture, Kennet Partners, TDF Ventures and Wildcat Venture Partners. It had secured $42.8m from Salesforce and Accenture the year before.
David Schmaier, founder and CEO of Vlocity, said: “Because every organisation, including the world’s largest customer-centric corporations and industries, must digitally transform, it is more important than ever for our customers to have products that speak the language of their industries.
“Our deep expertise in vertical industries enables organisations to digitally transform while delivering seamless, industry-specific processes and data models across any channel, helping to increase sales, service and marketing agility, operational efficiency, digital adoption and simplicity.”
