UPDATE: Salesforce.com buys Salesforce.org for $300 million
Salesforce.com Inc. (CRM) is buying Salesforce.org -- created to distribute Salesforce software at reduced amounts to nonprofits, schools and other organizations -- for $300 million. Salesforce.org will change from a public-benefit corporation to an arm of Salesforce dedicated to the same task, while the purchase price goes to the nonprofit Salesforce.com Foundation. Salesforce said it would continue "to provide free and highly discounted software to nonprofits and education institutions around the world" while making the philanthropic-minded arm of its business an actual software vertical within the company. Salesforce said it would add $150 million to $200 million in revenue to its books this fiscal year, but said the transaction's one-time, $200 million non-cash charge reduced its adjusted-profit forecast by 20 cents a share for the year. "The impact on GAAP EPS is expected to be more significant than for non-GAAP EPS due to the additional stock-based compensation charges and the impact of other various non-cash items, including income tax adjustments," the software company said. Shares declined slightly after the announcement was made; Salesforce executives planned a conference call for 2 p.m. Pacific time.
-Jeremy C. Owens; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
April 15, 2019 17:18 ET (21:18 GMT)
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