Salesforce Joins Cybersecurity Firm Tanium's Funding Round

Salesforce invested in a funding round for cybersecurity company Tanium, which is now valued at about $9 billion.
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Salesforce  (CRM) - Get Report said it was investing in Tanium's latest funding round, which values the security-software vendor at $9 billion. 

Tanium says in a statement that its data and unified endpoint management and security capabilities, together with Salesforce’s development platform, workflow capabilities, and third-party ecosystem, "will support a new way of delivering employee service management in an increasingly remote-working world." 

Tanium worked with Walmart  (WMT) - Get Report as it transitioned some corporate employees to remote work, the retailer's Chief Executive Doug McMillon said. 

"We didn’t just get by working virtually, we actually thrived, and I’m glad we had partners like Salesforce and Tanium who helped our tech teams make that possible in a secure way," McMillon said. 

CNBC reported that the new investment brings Tanium's total amount raised to $900 million, indicating that Salesforce invested about $100 million. 

Tanium, Emeryville, Calif., didn’t disclose the size of the round, CNBC reported. But it had previously raised a total of about $800 million when it raised money in 2018, valuing Tanium then at $6.5 billion, CNBC reported.

Earlier this week, Jefferies raised its price target on Salesforce stock to $220 from $205 on the idea that the company would slow down its M&A activity for the balance of the year. 

"We believe we saw a meaningful acceleration in M&A in 2019, and CRM needs to take a breather to digest the Tableau deal, the biggest one so far," analyst Brent Thill said. "CRM needs to make sure the integration between the various clouds is seamless before embarking on more M&A."

In May, Salesforce, San Francisco, issued second-quarter revenue guidance of between $4.89 billion to $4.9 billion, up roughly 22% year over year and lower than an analyst consensus of $5.03 billion.

For the full year, Salesforce updated its revenue guidance to $20 billion, up 17% year over year. It had previously guided for between $21 billion to $21.1 billion for fiscal 2021.