Salesforce.com Inc., which sells CRM software and cloud computing services, is buying social marketing platform Buddy Media for $689 million so it can better compete in the growing social media sector.
Salesforce CEO Marc Benioff says the company chose Buddy Media because of its reputable products and the strength of its platform, adding the acquisition will allow Salesforce to keep up with customer demand.
Salesforce provides its clients with customer-relations software, including a social networking feature that helps maximize customer service with social engagement. In complement of this offering, Buddy Media allows customers to place content on social media networks and track its effectiveness, and has several major clients like Mattel Inc. and Ford Motor Co.
The Buddy Media buy is the largest in Salesforce history, and CRM leader plans to merge Buddy Media with Radian6, which it purchased in 2011 for $326 million. Radian6 helps clients track and analyze their outreach on social media networks, while also tracking what is being said about their brands.
Salesforce estimates purchasing Buddy Medial will boost revenue between $20 million-$25 million annually; Salesforce brought in $2.2 billion in revenue in 2011.
Buddy Media previously rejected an offer by Google Inc.
Buddy Media was co-founded by CEO Michael Lazerow, who is also the co-founder of four other media companies, two of which have already been sold – one to Time Warner Inc. and one to CBS Corp.
The deal with Salesforce is expected to close sometime during the third quarter, or before October 31.
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