Salesforce.com Acquires ExactTarget (ET) For $2.5 Billion
Salesforce.com, Inc. (NYSE:CRM) is acquiring marketing software services company ExactTarget Inc (NYSE:ET) for $2.5 billion. Salesforce.com is paying $33.75 per share, which is about 53% above ExactTarget’s closing price as of yesterday. Salesforce.com customers will now be able to manage campaigns over e-mail, social networks, and mobile devices through the Salesforce Marketing Cloud service.
This is one out of many acquisitions that Saleforce.com made for marketing companies. Salesforce.com acquired Buddy Media for $689 million last year. Two years ago, Salesforce.com acquired Radian6 to help customers track campaign effectiveness on Facebook and Twitter.
“The addition of ExactTarget makes Salesforce the starting place for every company and puts salesforce.com in the pole position to capture this opportunity,” stated Salesforce.com chairman and chief executive officer Marc Benioff.
Salesforce.com’s advisors include Bank of America Merrill Lynch and JPMorgan Chase on the acquisition. The deal is expected to be completed late in its fiscal second quarter ending July 31st.
Salesforce.com expects the deal to reduce their 2014 non-GAAP EPS by roughly $0.16 and increase total revenue by $120 million to $125 million. The company’s adjusted earnings are now expected in a range of 31 cents to 33 cents per share on revenue between $3.96 billion and $4 billion.
ExactTarget allows marketers to integrate customer data from any source to digital marketing campaigns on multiple channels. Founded in 2000, ExactTarget is used by over 6,000 companies including Coca-Cola, Nike, and GAP.
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry