Salesforce.com to Acquire ExactTarget in Deal Valued at $2.5 Billion (CRM, ET)

Salesforce.com Inc. (NYSE: CRM) announced on Tuesday that it has agreed to purchase marketing software maker ExactTarget Inc. (NYSE: ET) in a cash deal valued at $2.5 billion. According to the terms of the deal, Salesforce will pay $33.75 a share, which will represent 53% premium over Monday’s closing stock price. Shares of ExactTarget catapulted about 50% in early trade following the announcement. Commenting over the deal, salesforce.com’s Chief Executive Marc Benioff said to analysts in a conference call, “This was a very competitive process, and we’re thrilled to be the victors here.” Based in Indianapolis, ExactTarget was founded in 2000. The Company makes internet based software, helping enterprises to run social media campaigns and send personalized emails and messages. ExactTarget made an IPO last year at $19. With the acquisition of ExactTarget, Salesforce.com is eyeing to merge former’s digital marketing prowess with its marketing software and services. The Company hopes to create a comprehensive marketing platform, allowing users to easily target their market via social media, email, the Web and mobile. The deal was unanimously approved by both boards and is expected to close by late July. Meanwhile, Salesforce.com slashed its outlook on fiscal second quarter and full-year earnings, citing that the recent acquisition will weigh on the bottom line. For the fiscal second quarter, the Company now expects non-GAAP earnings to be in the range of 6 cents to 7 cents a share compared to its earlier projection for 11 cents to 12 cents a share. No significant impact is anticipated on the revenue for the fiscal second quarter. For the full-year fiscal, Salesforce.com expects non-GAAP earnings of 31 cents to 33 cents a share down from its earlier forecast for 47 cents to 49 cents a share. Revenue for the current fiscal year is expected between $3.9555 billion and $4 billion up from its earlier projection of $3.84 billion to $3.88 billion.