Salesforce.com to Buy Buddy Media
The cloud computing company plans to fork over $689 million in cash and equity for the social media marketing platform
Salesforce.com (NYSE: CRM) has entered into a definitive agreement to acquire the social media marketing leader Buddy Media, Inc.
The cloud computing business, which offers online sales management tools, intends to pay $467 million in cash, $184 million in common stock equity, and $37 million in vested options and restricted stock for the New York-based company.
Investors expecting to make a return on their investment include Greycroft Partners, WPP Plc, Japan's SoftBank Capital, founders of Angel Investors LP, Mark Pincus and venture capitalist Peter Thiel.
Buddy Media, which got its start five years ago, supports companies and advertisers to connect with customers on Facebook, Google, LinkedIn, Twitter, YouTube and other social media platforms.
Salesforce stated that it will combine Buddy Media with its social media monitoring tool, Radian6.
The transaction is subject to customary closing conditions and is expected close within Salesforce.com’s fiscal third quarter which ends on Oct. 31. Buddy Media’s board of directors and stockholders are all in favor of the deal.
The deal comes nearly four months after Buddy Media bought London-based Brighter Option, a social ad management software developer. The deal allowed Buddy Media to fuse social publishing, applications, analytics, commerce, and paid advertising under one platform.
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