The transaction is expected to close by the end of Salesforce.com’s second quarter, which ends in July. The acquisition is subject to the receipt of the majority of ExactTarget’s shares and the customary regulatory review.
Salesforce.com expects the acquisition to contribute $120 million to $125 million to total revenues in the 2014 fiscal year, which reflects a reduction of $65 million to $70 million in adjustments and approximately $40 million to $45 million in transaction costs. Adjusted earnings per share (EPS) for the 2014 fiscal year are expected to be reduced by approximately $0.16. Salesforce.com also expects a negative impact on second quarter EPS of $0.05.
Salesforce.com now forecasts full-year revenues of $3.955 billion to $4 billion, up 30% to 31% compared with last year. Adjusted diluted EPS is forecast at $0.31 to $0.33. The company’s pre-acquisition consensus EPS estimate totaled $0.49 on revenues of $3.87 billion.
ExactTarget had been forecast to lose $0.30 a share in the company’s fiscal year ending in December on revenues of $378.35 million. Salesforce.com’s buyout of the firm is particularly good news for ExactTarget’s shareholders.
ExactTarget’s shares are up 53.2% in pr-market trading this morning, at $33.75 in a 52-week range of $17.25 to $24.93.
Salesforce.com’s shares are up about 0.3% at $41.16 in a 52-week range of $30.05 to $47.58.
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