Salesforce has made yet another acquisition, once again to build out its footprint in marketing and ad tech. The company has just confirmed that it is buying Krux, a company that tracks traffic (“data signatures”) across multiple devices –desktop, mobile, tablet, set-top — and channels — display, social, search, video. In a statement to the SEC, Salesforce said that it would pay $340 million in cash plus stock. A story giving a heads up on the sale in AdExchanger said the price was between $650 million and $750 million — which might also include earn-outs and the value of that stock.
Krux had raised only $50 million in its time as a startup: investors included Accel, Sapphire Ventures and IDG. It currently works with some 200 customers.
“Krux is a leading data management platform that unifies, segments and activates audiences to increase engagement with users, prospects and customers. Following the acquisition, Krux will be a wholly owned subsidiary of the Company,” Salesforce said in its statement.
The value to Salesforce of this deal is that it helps expand the company’s big data play around marketing and advertising. The company has made some 44 acquisitions to date, with perhaps around a dozen focused on ad tech and marketing tech, including ExactTarget, Buddy Media and Radian6, which are folded into the company’s Marketing Cloud division.
In terms of the overall price, Salesforce said it would also “issue shares of Company common stock. The aggregate number of shares of Company common stock to be issued will be determined based on the volume-weighted average closing price of Company common stock during the ten trading days ending on (and including) the second trading day before closing of the acquisition (the “Company Trading Price”); provided that, for purposes of determining the number of shares to be issued, the Company Trading Price will not be less than $57.25 nor more than $100.18. As a result, if the acquisition is consummated, the Company expects to issue at closing between approximately 3.4 million and approximately six million shares of Company common stock. A portion of the shares will be subject to vesting conditions based upon continued employment of certain recipients following closing of the acquisition.”
The acquisition is anticipated to close in the Company’s Q4 that ends January 31, 2017.
More to come.