Salesforce.com in Talks to Buy U.S.-Israeli ClickSoftware Technologies for $1 Billion

If the deal is completed, it would be the second major acquisition by Salesforce in Israel in less than a year after it paid $850 million for Datorama, an Israeli cloud-based artificial intelligence marketing platform

An employee walks through a hall inside the Salesforce.com Inc. office at the new Salesforce Tower in San Francisco, California, U.S., on Tuesday, May 22, 2018.
David Paul Morris / Bloomberg

Salesforce.com, the U.S. cloud-based applications software giant, is in talks to acquire U.S.-Israeli software developer ClickSoftware Technologies for more than $1 billion from the U.S. private equity firm Francisco Partners.

The sides have signed a memorandum of understanding, but final terms have not been concluded and Click Software employees have not been officially notified.

If the deal is completed, it would be the second major acquisition by Salesforce in Israel in less than a year after it paid $850 million for Datorama, an Israeli cloud-based artificial intelligence marketing platform in July.

Salesforce declined to comment, saying it doesn’t respond to market rumors. Francisco Partners did not respond by press time.

ClickSoftware, a provider of cloud-based field service management software, had traded on the Nasdaq before Francisco Partners bought it in April 2015 for $438 million. Headquartered in Massachusetts, the company has more than 700 employees in eight countries, including Israel, where it was founded.

Francisco Partners has bought several Israel companies, including the cyber-hacking company NSO and the broadcast management software maker SintecMedia. Verint has been in talks to buy NSO last year for about $1 billion, but the deal fell through in July.

Salesforce was founded in 1999 by Marc Benioff 20 years ago. Although most of its revenue comes from a customer relationship management products, Salesforce also sells enterprise applications for customer service, marketing automation, analytics and application development. The company has a research and development center as sales office in Israel.