Filing: Salesforce paid $419M to buy Spiff in Feb

Core Insights - Salesforce acquired Spiff for $419 million, which includes $374 million in cash, to enhance its management of incentive-based compensation schemes for customers [1][2] - The acquisition follows Salesforce's first revenue miss in nearly 20 years, reporting quarterly revenues of $9.13 billion against analyst expectations of $9.15 billion [1][3] Acquisition Details - Spiff was last valued at $260 million in May 2023 before the acquisition announcement in December 2023, with the deal closing in February 2024 [2] - Spiff has raised approximately $110 million from various investors, including Salesforce, Lightspeed Venture Partners, and Norwest Ventures [2] Market Context - The acquisition reflects a trend where stronger companies are still able to command high prices despite a challenging funding environment for startups [3] - Spiff reported significant growth, doubling its customer base to 1,000 and achieving 100% revenue growth in the last year, with an overall revenue increase of 800% since its founding during the pandemic [3] Strategic Focus - Spiff has developed AI-based no-code, self-service tools aimed at helping customers create sales commission schemes, which aligns with Salesforce's goals to grow its revenue [4] - Salesforce recorded $323 million in goodwill related to the acquisition, indicating the value of the assembled workforce and market opportunities, along with $52 million in intangible assets attributed to Spiff's technology and customer base [4]