MuleSoft

MuleSoft develops the integration software which is used by the companies for interaction of different applications, data and devices. Mulesoft proposes the solutions on the basis of the Anypoint Platform platform to banks, the automobile companies, retailers and others. By March, 2018 more than 1200 companies, including Coca-Cola, McDonald’s, Salesforce.com, Citrix, Barclays, Unilever and Mount Sinai use solutions of vendor. The volume of the world market of such solutions in MuleSoft is estimated at $29 billion.

The startup under the name MuleSource in 2006 was based by Ross Mason and Dave Rosenberg, and in 2009 the company was renamed into MuleSoft. As of March, 2018 in its state there are more than 1100 employees. MuleSoft has the representations in 12 countries of the world.

Performance Indicators

2016

In 2016 MuleSoft gained $187.7 million that is 70% more, than the previous year. Net losses decreased to $49.6 million from $65.4 million in 2015.

History

2018: Salesforce purchased MuleSoft for $6.5 billion

In March, 2018 the producer of corporate cloud solutions Salesforce.com officially announced merger of MuleSoft. The cost of the transaction was $6.5 billion, a part of this amount will be financed by own means of the buyer, and the remained share - his securities.

Within absorption Salesforce will pay $44.89 for each stock MuleSoft that is 36% higher than their market value as of March 19, 2018. It is supposed to complete execution of the transaction until the end of July of the 2018th.

Developments of MuleSoft will form the basis of new service Salesforce Integration Cloud which will allow clients of the company to bring together the data which are in public and private clouds.^[1]

Salesforce purchased the developer of integration software Mulesoft for $6.5 billion

According to CNBC TV channel with reference to the polled analysts, merger of MuleSoft by Salesforce company became the most expensive purchase in the market of cloud software that will probably promote growth of cost of similar transactions in the future. Analysts of Raymond James called the amount of $6.5 billion overestimated, having noted that Salesforce gave for MuleSoft to 16 times more of the predicted revenue of this company in 2018.

Experts believe that merge of Salesforce and MuleSoft can induce other large companies, such as Cisco, Google, Microsoft, Oracle and SAP to similar absorption.

For comparison, SAP in 2014 paid for purchase of Concur in 9 times more of annual revenues of the company, and an average value according to transactions in which suppliers of cloud services participated, makes 5.3 (at least by 2012), analysts of JMP Securities note.

The analyst of Piper Jaffray Alex Zukin says that estimates of software makers grew. Salesforce paid twice more, than ever, buying the companies because MuleSoft works at large market and helps clients to be connected without problems to the systems.

2017: Entry into the exchange

On March 17, 2017 MuleSoft made the IPO. In the first day in the status of the public company of its action grew in price for 46%, and market value jumped up twice, Reuters reports.

Initially MuleSoft was going to carry out the IPO in the price range of $14-16 on an action and to attract about $100 million. In fact the company sold in the public market 13 million securities at $17 apiece therefore it attracted in total $221 million and recorded market capitalization at the level of nearly $3 billion. These are twice more business valuations which MuleSoft investors according to the results of the last private financing of vendor in 2015 gave.

On March 17, 2017 MuleSoft placed the shares on the exchange in New York

Shares of MuleSoft are placed on the New York Stock Exchange under a ticker of MULE. At the beginning of the first day of biddings the cost of one stock of the company reached $24.25, and by the end of day it made $24.75.

According to the managing director and the head of researches of SharesPost company Rohit Kulkarni, among investors strong demand for shares of the manufactures of the corporate software, having good reputation and private business valuations in the range from 1 to 5 billion dollars is observed.^[2]

Notes