Salesforce.com to Acquire Cloud Marketing Firm for $2.5 Billion
Salesforce.com has made an offer to acquire cloud marketing firm ExactTarget in a deal valued at approximately $2.5 billion, salesforce.com announced today.
The all-cash transaction calls for salesforce.com to pay $33.75 for each outstanding share of ExactTarget stock.
Salesforce.com, the leading customer relations managment (CRM) provider in the world, hopes to combine its software and cloud services with the marketing expertise of ExactTarget to create "a world-class marketing platform across email, social, mobile and the web." According to salesforce, Gartner research indicates CRM marketing grew 21% in 2012, faster than any other CRM category. "The addition of ExactTarget ... puts salesforce.com in the pole position to capture this [marketing] opportunity," salesforce.com CEO Mark Benioff was quoted as saying.
The ExactTarget acquisition is expected to increase salesforce.com's revenue for its 2014 fiscal year by $100 million to $125 million, and reduce non-GAAP earnings by approximately $0.16 a share for the year, $0.05 a share in salesforce.com's current fiscal Q2. The expected impact on earnings are a result of transaction fees and other acquisition-related costs.
The deal, which is expected to close near the end of July 31, has been unanimously approved by the boards of directors of both companies and is subject to customary closing conditions including antitrust clearance.
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