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Salesforce to Buy ExactTarget for $2.5B

It will be the company's eight acquisition this year

   

SalesforceShares of Salesforce.com (CRM) sank more than 3% in Tuesday morning trading after it announced that it would acquire a marketing software developer for $2.5 billion.

Under the deal, Salesforce will pay a 53% premium for ExactTarget (ET) at $33.75 a share. The purchase will be the Salesforce’s eight purchase this year and is produced to be finalized in the second fiscal quarter, Reuters notes.

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The company forecasts the acquisition to boost its annual revenue of between $120 million and $125 million in the next fiscal year. It is also estimated to lower Salesforce’s 2014 earnings by 16 cents a share.

Predictably, shares of ExactTarget, which offers online software to manage digital advertising, shot up by more than 52%.

Earlier this year, Salesforce announced a 4-for-1 stock split.


Article printed from InvestorPlace Media, http://investorplace.com/2013/06/salesforce-to-buy-exacttarget-for-2-5b/.

©2016 InvestorPlace Media, LLC

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