| Acqusitions
Radian6: On March 30, 2011, Salesforce.com announced that it has entered into a definitive agreement to acquire Radian6, which is the industry’s-leading social media monitoring platform, for an amount of approximately $276.0 million in cash along with a $50.0 million in stock, net of cash acquired. The company has set a deadline to complete the transaction within July 31, 2011, subject to the terms and conditions. With the acquisition of this company salesforce.com is expected to gain a leadership position in media monitoring. This presents a huge growth opportunity for the company as this segment offers much business potential.
Dimdim: On January 6, 2011, Salesforce.com announced that it completed the acquisition of Web-based video conferencing firm, Dimdim. Total cash consideration for the deal was $31.0 million. Dimdim’s technology will better complement its existing collaborative cloud offering, known as Chatter (introduced in June 2010). The Dimdim capability will add real-time communication to the Chatter platform, aiding direct interaction through the platform itself. The acquisition will expand the customer base, geographical exposure, and market share of Salesforce. However, Salesforce will witness a dilution of approximately $0.01 in its 4Q11 GAAP earnings and roughly $0.04-$0.05 in its FY12 earnings.
Heroku: On January 3, 2011, Salesforce.com wrapped up the acquisition of cloud-based application solution provider, Heroku. Salesforce paid $212.0 million in cash. The company also granted restricted shares worth $27.0 million and paid $10.0 million for unvested Heroku shares. Heroku is the leading Ruby platform-as-a-service, built from the ground up to work in an open environment and take advantage of the Ruby language. Ruby has become the leading development language used to write Cloud 2 apps that are social, collaborative and deliver real-time access to information across mobile devices. The company expects the acquisition to attract and serve a critical mass of developers, customers and ISVs wanting an open, scalable and trusted Cloud 2 platform.
Etacts: On December 21, 2010, Salesforce.com announced that it acquired of email contact managing firm, Etacts.com. Financial terms of the deal have not been disclosed. Etacts, which launched in February 2010, connects with one’s Gmail account and builds out a list of contacts from inbox. The service also allows the user to connect to mobile phone, which will track frequent callers or message senders.
Others
On November 1, 2010, Salesforce.com completed the purchase of approximately 14 acres of undeveloped land in San Francisco, California, including entitlements and improvements associated with the land and parking rights in an existing garage for approximately $278.0 million in cash. The company plans to use the land to build a facility that will become its new global headquarters.
|
