(Reuters) – Web-based software maker Salesforce.com Inc said it will buy social media marketing company Buddy Media for about $689 million in cash and stock, and cut its full-year earnings per share forecast as a result of the deal.
Buddy Media, which allows customers to publish content and measure the effectiveness of social media marketing programs, counts Ford Motor Co, Hewlett-Packard Co, L’Oreal SA and Mattel Inc among its customers.
The transaction includes about $467 million in cash, $184 million in stock, and $38 million invested Salesforce options and restricted stock units.
Salesforce now expects an adjusted full-year profit of $1.45 to $1.49 per share, excluding items, down from its earlier forecast of $1.60 to $1.63 per share.
The company raised its revenue outlook range to about $2.99 billion to $3.03 billion, from $2.97 billion to $3.00 billion.
The deal is expected to be completed during the third quarter, the company said in a statement.
Investors in Buddy Media include strategic backer WPP Digital and VCs Institutional Venture Partners, Insight Venture Partners, Bay Partners, GGV Capital, Greycroft Partners and Softbank Capital.
(Reporting by Sayantani Ghosh in Bangalore; Editing by Roshni Menon and Jonathan Marino)
Image Credit: Buddy Media