Cloud computing solutions provider Salesforce.com, Inc. (CRM) will acquire marketing software company ExactTarget, Inc. (ET) for about $2.5 billion in cash, the two companies said Tuesday. Salesforce.com noted that the acquisition will accelerate the growth of the Salesforce Marketing Cloud. Shares of ExactTarget are currently gaining almost 53 percent.
Salesforce.com provides enterprise cloud computing applications such as customer and collaboration relationship management to businesses. Some of its bigger rivals include Oracle Corp. (ORCL) and Sap AG (SAP).
Indianapolis, Indiana-based ExactTarget's customers comprise more than 6,000 companies, including Coca-Cola Co. (KO), Gap Inc. (GPS) and Nike Inc. (NKE), to manage their digital marketing.
Under the terms of the deal, Salesforce.com will commence a tender offer for all outstanding shares of ExactTarget for $33.75 per share, in cash. Following the completion of the tender offer, ExactTarget shares not tendered in the tender offer will be converted in a second step merger into the right to receive the same $33.75 per share in cash paid in the tender offer.
The per share offer price represents a 53 percent premium to ExactTarget's closing stock price of $22.10 on Monday. The boards of directors of both companies have approved the transaction, which is expected to close late in salesforce.com's fiscal second quarter ending July 31, 2013.
Salesforce.com expects that the combination of ExactTarget's digital market capabilities with salesforce.com's sales, service and social marketing solutions - listening with Radian6, publishing with Buddy Media, and advertising with Social.com - will deliver the marketing platform of choice for chief marketing officers or CMOs. Salesforce.com aims to become the world's leading customer relationship management or CRM platform.
Gartner estimates that by 2015, consumer technology companies will have switched one-third of their traditional marketing budgets to digital, and CMOs will outspend chief investment officers or CIOs on information technology by 2017.
Citing the ExactTarget acquisition, Salesforce.com reduced its outlook for second-quarter adjusted earnings by about $0.05 per share, to a range of $0.06 to $0.07 per share. However, the company does not expect the transaction to have any impact on its revenue for the quarter, which it previously forecast in a range of $931 million to $936 million.
On average, analysts polled by Thomson Reuters expect the company to earn $0.12 per share for the quarter on revenues of $935.26 million.
For fiscal 2014, Salesforce.com reduced its outlook for adjusted earnings per share by about $0.16 to a range of $0.31 to $0.33, but increased its forecast for total revenue by $120 million to $125 million to a range of $3.955 billion to $4.00 billion. Analysts expect the company to report earnings of $0.49 per share for the year on revenues of $3.87 billion.
In Tuesday's regular session, CRM is trading at $39.85, down $1.19 or 2.90 percent on a volume of 4.52 million shares.
ET is trading at $33.73, up $11.63 or 52.62 percent on a volume of 17.26 million shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.