Salesforce Invests in Wearable Software Startup APX Labs - Analyst Blog

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Continuing with its strategy of investing in startups, salesforce.com, Inc. CRM recently injected funds into APX Labs - a software maker for wearables used at workplaces. Salesforce has made investment through its venture capital arm, SalesForce Ventures.

According to a Washington Business Journal report, "APX Labs has raised another $10 million in venture capital, a round that includes new investors SalesForce Ventures and SineWave Ventures". However, it is still not clear how much each company has invested.

APX Labs specializes in making software which can be integrated with wearable devices, like Google Inc.'s GOOGL Google Glass and Apple Inc.'s AAPL Apple Watch. The software makes these wearable devices more useful.

APX Labs' wearable tech software is mostly used in heavy industries like energy, telecommunications, automotive and aerospace. The app is believed to improve the entire workflow of the companies with its various features like, contract approval and sending email with just a tap.

Salesforce has always encouraged wearable devices. So by investing in APX Labs, the company is trying to strengthen its position in the wearable tech software space. Some of its other investments in wearable startups include Speakeasy - a conference calling software, and PULS - Will.i.am's smartwatch company.

Over the past few years, Salesforce made several investments in startup businesses either through acquisitions or partnership arrangements. The most recent one was the buyout of smart calendar app, Tempo, from Tempo AI Inc.

The Tempo app acts as a virtual calendar, easily integrating with calendar, email, contacts and other apps on users' smartphone and offering relevant information and suggestions. However, it is still unclear whether Salesforce will use Tempo's technology or its engineering talent to develop new products or improvise on the existing ones.

We believe that Salesforce's sustained focus on expanding business through strategic acquisitions and investments will drive growth over the long run.

Currently, Salesforce carries a Zacks Rank #2 (Buy). Advent Software Inc. ADVS , sporting a Zacks Rank #1 (Strong Buy), is another stock worth considering in the computer-software industry.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Symbols: AAPL , CRM , GOOGL

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