In its second major acquisition in two months, Salesforce has agreed to buy Israel’s ClickSoftware for $1.35 billion to beef up its offerings for mobile workforces.
Privately-held ClickSoftware is a leading provider of field service solutions that help companies keep track of employees performing maintenance for customers. Founded in 1997, it has more than 15,400 customers around the world in a wide variety of industries, including Bosch, Deutsche Telekom, Ericsson, and Unisys.
Salesforce already competes in the field service space with its Field Service Lightning, which is part of its Service Cloud business.
“Delivering exceptional field service is an increasingly important priority for companies across industries with more than 70 percent of customer service leaders making significant investments to transform their mobile workforce,” Bill Patterson, executive vice president of Salesforce Service Cloud said in a news release.
“Our acquisition of ClickSoftware will not only accelerate the growth of Service Cloud, but drive further innovation with Field Service Lightning to better meet the needs of our customers,” he added.
In June, Salesforce acquired Tableau, a maker of data analytics software, in another move to diversify away from its core CRM software business. It also bought another Israeli company, Datorama, for $850 million in July 2018.
The ClickSoftware deal “could help Salesforce compete with Microsoft,” which acquired field service software company FieldOne in 2015, CNBC said. In its June earnings report, the company reported that Service Cloud crossed the $1 billion revenue threshold for the first time.
“This acquisition is designed to keep those numbers growing,” TechCrunch said.
ClickSoftware went public in 2000, remaining listed until it went private again in 2015 in a deal with private equity firm Francisco Partners, which bought it for $438 million. It has partnered with Salesforce since the launch of Field Service Lightning in 2016.
“Our mission has been clear since the beginning — to be the global leader in field service management and deliver significant value to our customers. Joining Salesforce provides a tremendous opportunity to accelerate this vision,” ClickSoftware CEO Mark Cattini said.