Buys InStranet

BOSTON, Aug 20 (Reuters) – Business software maker Inc (CRM.N: Quote, Profile, Research, Stock Buzz) said on Wednesday that it bought smaller software maker InStranet Inc for $31.5 million.

It is Salesforce's largest acquisition since the developer of computer programs that customers can only access using Web browsers and the Internet was founded a decade ago.

Salesforce spokesman Bruce Francis said the purchase, which closed Aug. 4, had no impact on results for the fiscal second quarter ended July 31.

He declined to comment on how the purchase would affect results in the third quarter, saying company executives would address that issue in an earnings conference call Wednesday afternoon.

Salesforce is scheduled to report fiscal second-quarter results after the close of U.S. stock markets on Wednesday.

InStranet had $4.2 million in cash and no debt on its balance sheet at the time of its sale to Salesforce, Francis said. He declined to disclose the privately held company's earnings.

Chicago-based Instranet has most of its operations in France. (Reporting by Jim Finkle; Editing by Andre Grenon)


peHUB Note: InstraNet had raised over $30 million in VC funding since 2000, from firms like Add Partners, Business Objects, Benchmark Capital, Galileo Partners and RSA Capital. Read more