Salesforce (NYSE: CRM), the world’s #1 CRM company, agreed to acquire San Francisco-based startup Quip, a next-generation productivity platform, for $582 million in stock. The purchase price doe not include consideration attributable to Salesforce Ventures’ previous investment in Quip.
A portion of the Salesforce shares to be issued will be subject to vesting conditions based upon continued employment of certain recipients following the closing. In addition, Salesforce has agreed to assume stock options and other equity awards of Quip.
The deal is subject to customary closing conditions, including regulatory approvals. The acquisition is anticipated to close in the third fiscal quarter of Salesforce, ending October 31, 2016. Following the acquisition, Quip will be a wholly owned subsidiary of Salesforce.
Quip was founded in 2012 by Bret Taylor, former co-creator of Google Maps and CTO of Facebook, and Kevin Gibbs, who previously led engineering and product at Google and brought Google’s App Engine to market.
Quip is a living document platform that combines documents, spreadsheets, and communication all in one to help teams get work done faster and smarter. Enabling a frictionless workflow for creating and iterating on living documents, Quip was built for the way people work today — across a variety of devices and locations. Quip’s simple interface combines documents and messages into a single chat-like thread of updates, making collaboration immediate and easy. Some of Quip’s customers include Facebook, New Relic, Instacart, Al Jazeera, Product Hunt, and Pinterest, among others.
Quip had previously raised $45 million in venture capital from Greylock Partners and Benchmark.
“We’re inspired by the possibilities ahead of us,” Taylor said in Quip’s blog. “As part of Salesforce, we will be able to expand our service more quickly and reach millions of people all over the world — which has been our mission since day one. And, we’ll be able to extend the Salesforce Customer Success Platform in powerful new ways with our next-generation productivity capabilities. The possibilities of mixing data, content and communication are amazing.”
On August 1, Salesforce completed the previously announced acquisition of San Mateo, Calif.-based startup Coolan, a community-based software platform that provides actionable insights about data center performance.
Salesforce provides enterprise cloud computing solutions, with a focus on customer relationship management to various businesses and industries worldwide. The company was founded in 1999 and is headquartered in San Francisco, Calif. It has a market capitalization of roughly $54 billion.
Photo: Salesforce Chairman and CEO Marc Benioff.