Salesforce, the leading cloud marketing platform, has announced its largest acquisition to date, significantly expanding its footprint in the digital marketing space. As one of the biggest players in the CRM market, Salesforce is set to acquire all outstanding shares in ExactTarget, a prominent digital marketing provider.
This buyout is a strategic move, perfectly aligning with Salesforce’s acquisition strategy focused on the cloud marketing sector. The deal is valued at approximately $2.5 billion.
Key Details of the Landmark Deal
- Acquisition Target: ExactTarget
- Acquirer: Salesforce.com
- Estimated Value: Approximately $2.5 billion
- Price Per Share: Salesforce.com will pay $33.75 per share for ExactTarget.
- Stock Premium: This represents a premium of over 50% compared to ExactTarget’s Monday closing price of $22.10. ExactTarget, which went public in late 2011, saw its stock jump 53.3 percent in Tuesday pre-market trading following the announcement.
- Outstanding Shares: According to FactSet, ExactTarget has about 69.3 million outstanding shares.
- Approval: The boards of both companies have unanimously approved the buyout.
- Expected Close: The acquisition is expected to finalize by July 31.
Strategic Vision and Market Impact
This acquisition is poised to create a formidable new “force” in the world of marketing platforms. By integrating ExactTarget’s robust digital marketing capabilities with Salesforce.com’s existing sales, service, and social marketing solutions, Salesforce aims to deliver a more comprehensive and powerful suite of tools to its customers.
The press release emphasized this synergy, stating, “The combination of ExactTarget and Salesforce.com will increase the value proposition that customers of both companies will receive.” This integration is also expected to foster more cross-selling opportunities between ExactTarget and Salesforce clients.
Salesforce’s Track Record in Cloud Acquisitions
This isn’t Salesforce’s first major move in bolstering its cloud offerings. The company has a history of strategic acquisitions to enhance its market position:
- Last year, Salesforce acquired Buddy Media for $689 million.
- It also paid $340 million for Experian Acquires Techlightenment to Bolster Social Media Reach“> social media tracking firm Radian6.
Broader Market Context
The acquisition reflects a broader trend of consolidation and growth within the marketing technology landscape. In similar news earlier this year: