Under the agreement, the purchase price will be paid in cash. Salesforce will also assume outstanding unvested equity awards held by Vlocity employees.
The acquisition of the cloud and software provider is expected to close during the second quarter of fiscal 2021, subject to customary closing conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
Keith Block stepped down as co-CEO of Salesforce. Marc Benioff will become chair and sole CEO of the company. Block, who was named co-CEO in August 2018, will remain with the company as adviser to the CEO.
Salesforce named Gavin Patterson as president and CEO of Salesforce International. Patterson, a former British Telecom CEO who joined the company as chairman for Europe, the Middle East, and Africa, will now oversee its largest international markets outside of the U.S.
The company also announced its fiscal fourth-quarter 2020 results. The company’s revenue for the quarter ended January 31 jumped 35 percent year over year to $4.85 billion, up from $3.60 billion, in the year-earlier quarter. The S&P Global Market Intelligence consensus revenue estimate for the company’s just-ended quarter was $4.76 billion.
Subscription and support revenues for the quarter were $4.56 billion, an increase of 35% year over year. Professional services and other revenues for the quarter increased 26% to $288 million.
Salesforce posted a fiscal fourth-quarter net loss of $248 million, or 28 cents per share, compared to net income of $362 million, or 46 cents per share, in the prior-year period. Non-GAAP quarterly net income came to $602 million or 66 cents per share, compared to $548 million, or 70 cents per share, a year ago.
The S&P Global Market Intelligence consensus estimate for the period was 56 cents per share on a normalized basis, or a loss of 5 cents per share on a GAAP basis.
“Upon the close of the transaction, Vlocity — this wonderful company that we, as a team, have created, built, and grown into a transformational solution for six of the most important industries in the enterprise — will become part of Salesforce,” said Vlocity founder and CEO David Schmaier.