Breaking Finance News Buying ExactTarget for $2.5 Billion

In an announcement on June 4, (NYSE: CRM) announced that it is buying ExactTarget (NYSE: ET) for about $2.5 billion. Salesforce will pay $33.75 per share–a 53 percent premium over Monday’s closing price of $22.10.

According to the company, ExactTarget provides digital marketing software-as-a-service that allows organizations to communicate with their customers through interactive media like email, social media, and mobile. It allows companies to deliver and track advertising campaigns through it’s cloud-based service.

One of the reasons ExactTarget is attractive to Salesforce is because it’s a platform. Technology can be built on top of the platform to cater to unique business needs.

Until Tuesday, Salesforce’s largest acquistion was Buddy Media, a cloud-based social media marketing company. It paid $745 million for the company that it purchased in August of last year.

ExactTarget was listed as a $1.5 billion company that was, to date, unprofitable. Over the past six months, the stock has seen gains of about 12 percent and trades about 500,000 on average. In

In pre-market trading, the stock is up 53 percent at $33.73–2 cents below the acquisition price. is trading down 3.5 percent at $39.61.

Disclosure: At the time of this article, Tim Parker had no position in the above mentioned stocks.

[stock-tools exchange="NYSE" symbol="ET" image_height="180" image_width="300"]

[stock-tools exchange="NYSE" symbol="CRM" image_height="180" image_width="300"]

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with's FREE daily email newsletter.