Enterprise software company Salesforce has said it will be purchasing Buddy Media -- a corporation specializing in social media branding and campaigns on sites including Facebook and Twitter -- for approximately $689 million.
In a statement released today, San Francisco-based Saleforce has agreed to close the deal with the social media specialists for $467 million in cash, $184 million in stock, and an additional $38 million in invested Salesforce options and restricted stock.
It is likely the agreement will be finalized and completed in the months leading up to October 31st this year.
Marcel LeBrun, senior vice president of Salesforce Radian6’s social- media analysis platform in today's statement:
"Social media has caused the biggest transformation in marketing since the Mad Men era, causing chief marketing officers to completely re-think their strategies.
By bringing together market leaders Radian6 and Buddy Media, we are doubling down on the Salesforce marketing cloud to provide chief marketing officers with the ability to manage the entire social marketing lifecycle."
Once the deal is closed, Salesforce expects its fiscal 2013 revenue to reach $2.99 billion to $3.025 billion, with earnings per share that year (on a non-GAAP basis) expected to be between $1.45 to $1.49.
Salesforce stated that the acquisition of Buddy Media is not expected to impact any results in the fiscal second quarter.
Buddy Media's most recent valuation set its worth at $500 million in 2011. The deal is taking place two months after a former Salesforce sales executive, Susan St. Ledger, joined the social media specialists as their president.