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Salesforce buys its own philanthropic unit Salesforce.org for $300M
Salesforce.com Inc. has made a somewhat unusual acquisition, buying its own independent philanthropic organization Salesforce.org in a $300 million all-cash deal.
The deal, announced today, will see Salesforce.org transition from a California public benefit corporation to a business corporation, with the $300 million going to the Salesforce.com Foundation, an independent nonprofit organization that plans to distribute the cash philanthropically.
Meanwhile, Salesforce.org Chief Executive Officer Rob Acker will head up a new nonprofit and educational business vertical at Salesforce that will focus on managing sales and marketing for the company’s Customer Success Platform. In addition, the new business unit will also develop new “vertical-focused” cloud applications for nonprofits, educational institutions and philanthropy organizations.
“Combining Salesforce and Salesforce.org into a new nonprofit and education vertical reinforces the strength of Salesforce’s philanthropic model,” Salesforce officials said in a statement. “Salesforce will extend this model by continuing to provide free and highly discounted software to nonprofits and education institutions around the world and investing in local communities through employee volunteering, strategic grants and matching employee giving up to $5,000 per employee annually.”
The acquisition is significant enough that Salesforce is now adjusting its guidance for its fiscal-year revenue. It said revenue should rise by about $150 million to $200 million, with the exact figure depending on when the acquisition closes.
Photo: Salesforce.com
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