/ By Clive Minchom /
Cloud computing customer relationship management software company Salesforce.com has announced the successful completion of its previously announced tender offer for all of the outstanding shares of common stock of ExactTarget at a price of US$33.75 per share, which will cost about US$2.3 billion.
The tender offer expired at midnight Wednesday, July 10, 2013. As of the expiration of the offer, a total of approximately 64, 237, 892 ExactTarget shares were tendered, representing approximately 89.7% of the outstanding common stock of ExactTarget. In addition, notices of guaranteed delivery were delivered with respect to another 2.2% of the outstanding common stock of ExactTarget. All validly tendered shares have been accepted for payment, which will be made in accordance with the terms of the tender offer.
Salesforce.com will acquire all of the remaining outstanding shares of ExactTarget common stock by means of a merger under Delaware law. At the effective time of the merger, ExactTarget will become a wholly owned subsidiary of salesforce.com, and each share of ExactTarget’s outstanding common stock will be cancelled and converted into the right to receive the same consideration received by holders who tendered their shares in the tender offer. Thereafter, ExactTarget common stock will cease to be traded on the NYSE.
ExactTarget is a leading cloud marketing platform used by more than 6, 000 companies including Coca-Cola, Gap and Nike.
Salesforce.com states that its acquisition of ExactTarget furthers its mission of being one of the world’s leading Customer relationship management platform (CRM) – enabling companies to transform how they connect with their customers across sales, service and marketing. By combining ExactTarget’s leading digital marketing capabilities with Salesforce.com’s leading sales, service and social marketing solutions, salesforce.com’s stated goal is to create a world-class marketing platform across email, social, mobile and the web.
The dramatic increase in consumer and business use of social networks, mobile devices and new digital technologies is causing a revolution in marketing, and budgets previously spent on traditional media may now gradually but inexorably be moving to digital campaigns. Consulting firm Gartner estimates that by 2015 consumer technology companies will have switched one-third of their traditional marketing budgets to digital and Chief marketing Officers will outspend Chief Information Officers on information technology by 2017.
The combination of ExactTarget and salesforce.com is intended by Salesforce.com to increase the value proposition for customers of both companies. Salesforce.com customers will be able to extend their investments in sales, service and social marketing with access to the industry’s most comprehensive marketing automation solution. ExactTarget’s large customer base will have access to Salesforce.com’s own social marketing capabilities and may allow them to improve their end-to-end customer experience.