Salesforce.com Inc. (NYSE: CRM), provider of enterprise cloud computing and social enterprise solutions, has reached an agreement to acquire Buddy Media for $689 million. The acquisition of Buddy Media further expands CRMâ€™s presence in social media marketing.
Under the terms of the agreement, Salesforce.com will acquire Buddy Media for $467 million in cash, $184 million in CRM stock and $38 million in vested options and restricted stock. The transaction is expected to be completed by October 31, 2012.
Founded in 2007, Buddy Media offers chief marketing officers and advertising agencies a way to place content on social media and measure its effectiveness.
Salesforce.com said that the acquisition is expected to boost its revenue by $20-$25 million in the second half of its fiscal year ending January 31, 2013. The acquisition is expected to reduce CRMâ€™s earnings per share for the fiscal year ending January 31 by $0.14-$0.15. The company now expects full-year earnings per share to come in between $1.45 per share and $1.49 per share. Revenue for the full fiscal year is expected to come in between $2.99 billion and $3.03 billion.
Salesforce.com has been focusing on social and mobile services lately. The company has said that its social cloud features are the most direct way for its enterprise customers to become more social and mobile to serve their own customers and employees.
Last year, the company launched Chatter, which is a social-networking feature now integrated with its cloud-based suites of sales and business-management software. Earlier this year, the company also introduced Desk.com, which focuses on turning routine customer service into a social engagement that can boost sales.
Commenting on the latest acquisition, CEO Marc Benioff said that CRM now has the number one players in social listening and marketing-Radian6 and Buddy Media.
Salesforce.com shares are lower in pre-market trading today. At last check, the stock was down 1.28% to $129.31.