Feeds

Salesforce buys into cloud marketing with ExactTarget

Innovation through $2.5bn acquisition

Boost IT visibility and business value

Salesforce is a acquiring ExactTarget as the digital CRM company tries to do to marketing what it has done to CRM.

The $2.5bn acquisition was announced by Salesforce on Tuesday, and will see the company make a tender offer of $33.75 per share in cash for all outstanding shares of ExactTarget – a substantial premium above the $22 per share the company was trading at yesterday.

"The CMO is expected to spend more on technology than the CIO by 2017," said Salesforce chief Marc Benioff in a canned statement. "The addition of ExactTarget makes Salesforce the starting place for every company and puts salesforce.com in the pole position to capture this opportunity."

Salesforce is fast becoming to digital marketing what Amazon is to cloud computing, and the ExactTarget buy plays into a larger strategy of developing an ecosystem of services which get a large mass of people used to the Salesforce way of doing things. Readers may remember this strategy from Microsoft in the 90s, or IBM in the 70s and 80s.

The acquisition follows Salesforce's acquisitions of Radian6 ($326m, March 2011) and Buddy Media ($689m, June 2012), and the launch of Social.com in April of this year

ExactTarget produces a range of digital marketing tools including email, mobile device services (ready-made SMS templates, campaign management, automation, and so on), various tools for social networks such as Facebook and Twitter, analytics tools, cross-channel marketing platforms, and others. Its tech is used by over 6,000 companies, including Coca-Cola, Gap, and Nike.

The acquisition is likely piquing the interest of Oracle, which acquired Eloqua – a digital marketing one-stop shop much like ExactTarget – for $871m in December.

Both Oracle and Salesforce are on a quest to own the full sales cycle from initial contact through to relationship management and marketing. Oracle is doing this by integrating Eloqua into its other marketing and CRM products, and Salesforce has been doing much the same.

"The acquisition gives salesforce.com industry leading solutions across every major pillar of CRM," Salesforce wrote in a statement.

The transaction is expected to close within Salesforce's second quarter, which ends July 31, 2013. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.