As the competition between Microsoft, Google and Salesforce heats up, it has been revealed that Salesforce has bought a word processing software firm for $582 million. Salesforce is one of the world leaders in customer relationship management (CRM) tools, and it has now acquired Quip, a firm said to have software enabling collaboration, communication and content across a wide array of technology. This could offer a host of new opportunities for the CRM giant.
In the latest sector news, Salesforce paid an all-stock valuation of $582 million for the firm. The deal was disclosed when an 8-K document was filed with the US Securities and Exchange Commission. The papers described Quip as a firm supplying software that acted as a “next-generation productivity platform designed for teams, combining communication and content to enable collaboration within documents or spreadsheets, on phones, tablets, wearables and the desktop.”
Quip is four years old and is based in San Francisco. In previous funding rounds, Salesforce has showed interested in the firm, with $45 million being previously provided from the likes of Salesforce Chief Executive Marc Benioff, Salesforce Ventures, Greylock, Yuri Milner and Benchmark. The final agreed price was minus that of the previous Salesforce investment. This resulted in the trading price of Quip capital stocks to vary between $73.81 and $90.22 per share.
It is understood that once the deal has been finalised, Salesforce will make a shares issue, delivering between 6.5 million and 7.9 million common stock shares to cover Quip’s outstanding shares. It’s also reported that the co-founders of the firm, ex-Google Engineering and Product Lead Kevin Gibbs, and former Facebook Chief Technology Officer Bret Taylor, are included in the deal and will work under new owner, Salesforce.
Quip’s founders addressed the latest news in a blog post on their official website. They explained that by harnessing the power of Quip, the Salesforce platform would be able to extend itself “in powerful new ways with our next generation productivity capabilities.” The post added that the acquisition would allow “amazing” potential for mixing content, data and communication. Taylor and Gibbs also mentioned Salesforce’s current 1-1-1 model, and said that Quip will now fall under that culture of striving for equality as well as championing integrated corporate philanthropy.
The move comes as Salesforce continues to see increased competitions from the likes of Google and Microsoft. Quip is still hiring for marketing, sales, customer success and engineering positions.
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