Radian6 is used by more than half of the FORTUNE 100 and companies like AAA, Dell, GE, Kodak, Molson Coors, Pepsico, and UPS to monitor, analyze and engage in social media conversations
Radian6's unique technology monitors hundreds of millions of conversations every day across Facebook, Twitter, YouTube, blogs and online communities, delivering insights in real-time
Acquisition will enhance all Salesforce products - extending the value of the Sales Cloud, Service Cloud, Chatter and Force.com with social intelligence
Combination of salesforce.com and Radian6 will bridge the conversations happening on public social networks and salesforce.com's private, secure social corporate social network, Chatter
SAN FRANCISCO, March 30, 2011 - Salesforce.com (NYSE: CRM), the enterprise cloud computing (http://www.salesforce.com/cloudcomputing/) company, today announced it has entered into a definitive agreement to acquire Radian6, the industry-leading social media monitoring platform, for approximately $276 million in cash and $50 million in stock, net of cash acquired. The transaction is expected to be completed in salesforce.com's fiscal second quarter ending July 31, 2011, subject to customary closing conditions.
Comments on the News
o "With Radian6, salesforce.com is gaining the technology and market
leader in social media monitoring," said Marc Benioff, chairman and CEO,
salesforce.com. "We see this as a huge opportunity. Not only will this
acquisition accelerate our growth, it will extend the value of all of
o "Social media has made every business recognize the value of paying
attention to the voice of the customer. Radian6's technology is built
for the new norm of customer engagement - real time, two way
conversations that includes social channels," said Marcel LeBrun, CEO of
Radian6. "Joining the salesforce.com team will allow Radian6 to grow
faster to meet the demands of our rapidly expanding customer base."
Radian6 is the Market and Technology Leader in Social Media Monitoring and Engagement
Founded in 2006, Radian6 was created with the idea that companies need to monitor the social web in order to effectively join conversations with customers and prospects. Radian6's unique technology captures hundreds of millions of conversations every day across Facebook, Twitter, YouTube, LinkedIn, blogs and online communities, and provides actionable insights in real-time.
Radian6's products include a monitoring platform designed to help companies track and analyze their social media efforts, as well as an engagement platform to help companies connect with individuals and communities online. The intelligence gained from these conversations has become critical in helping companies better market and sell to prospects, service customers and understand what's being said about their brand, products, competitors and services.
As many companies adopt social media to engage with their customers, Radian6's customer base is rapidly expanding. Leading global brands like AAA, Dell, GE, Kodak, Molson Coors, Pepsico, and UPS use Radian6, along with more than half of the FORTUNE 100. Radian6 was chosen as a "leader" in independent research firm Forrester Research, Inc.'s "The Forrester Wave(TM): Listening Platforms, Q3, 2010 report, released in 2010. In the report, which evaluated the Radian6 Dashboard, as well as Radian6 s Engagement Console, Radian6 ranked above other platforms for functionality and was the only company to receive a 5.00 out of 5.00 score for product strategy and leading scores in market presence in both customers and financials.
Tracking Hundreds of Millions of Conversations across the Social Media Landscape with Radian6
Social media has exploded over the last few years, and the number of users on social networking sites has surpassed the number of people using email. Facebook has more than 500 million users, Twitter has more than 175 million users and LinkedIn has more than 100 million. With the explosive adoption of social media, many companies feel they have lost control of their brands and are not engaged with their customers and prospects on the social web.
Salesforce.com recognizes that the incredible adoption of social media has brought about a massive shift in the industry, the shift to Cloud 2. The first phase of cloud computing was about leveraging technologies that were low cost, fast and easy to use on your desktop. Cloud 2 represents the next generation of cloud computing, one that is inherently social, mobile and open. The proposed acquisition of Radian6 will accelerate the enterprise's shift to Cloud 2 by helping companies better manage the social interactions taking place both inside and outside their companies.
Radian6 Will Deliver Insights from the Public Social Web to Salesforce.com's Products
As the cloud computing leader, salesforce.com sees companies looking for an open, scalable and trusted social media monitoring platform that is completely integrated with their customer information. With the combination of Salesforce and Radian6, companies will be able to bring the heart of the public social web into salesforce.com's applications and platform including:
o Sales and Service Cloud: Social media monitoring and engagement has
emerged as the requirement for any brand and customer engagement
strategy, helping companies join conversations about their brands and
stay connected to their customers and prospects. By combining Radian6's
social media monitoring and engagement platform with Sales Cloud and
Service Cloud, companies will be able to keep customer success at the
center of their business with real-time social intelligence.
o Salesforce Chatter: Radian6 and salesforce.com will create the bridge
between public social networks, like Facebook, Twitter, YouTube, blogs
and online communities, and Salesforce Chatter, the private, secure
social network for the enterprise. Chatter feeds will no longer just
contain the activity happening within the walls of a company, but will
be filled with real time insights from fans on Facebook pages, followers
on Twitter, comments on blog posts and more.
o Force.com Platform: Developers will be able to build apps that tap into
the power of Radian6, putting the social web into everything they build.
In such a dynamic market, this acquisition will present a huge
opportunity for salesforce.com to extend its developer and partner
ecosystem with technology not available anywhere else.
Details Regarding the Proposed Radian6 Acquisition
Salesforce.com will acquire Radian6 for approximately $276 million in cash and $50 million in stock, net of cash acquired. In addition, approximately $10M in stock and $4M in cash will be issued to founders and will be subject to vesting conditions over two years. The acquisition has been approved by Radian6's board of directors and stockholders and is expected to close in the second quarter of salesforce.com's fiscal 2012, ending July 31, 2011, subject to customary closing conditions.
Additional details and information about the terms and conditions of the acquisition will be available in a current report on Form 8-K to be filed by salesforce.com with the Securities and Exchange Commission.
Financial Impact of Proposed Radian6 Acquisition
Q1 FY12: The acquisition is not expected to have a material impact on salesforce.com's fiscal first quarter results. The company is not updating its fiscal first quarter guidance.
Q2 FY12: The acquisition is expected to increase revenues by approximately $5 million and to reduce non-GAAP EPS by approximately $0.08 in the quarter ending July 31, 2011.
FY12: The acquisition is expected to increase revenues by approximately $45 to $50 million and to reduce non-GAAP EPS by approximately $0.11 in the year ending January 31, 2012. To reflect the impact of the acquisition, the company is updating the full-year guidance it provided on February 24, 2011. Specifically, the company now expects FY12 revenue in the range of approximately $2.075 billion to $2.1 billion, and FY12 non-GAAP EPS in the range of approximately $1.24 to $1.27.
Non-GAAP EPS excludes the impact of the following non-cash items: stock-based compensation, amortization of purchased intangibles from acquisitions, and the amortization of debt discount on the company's convertible senior notes, as well as the tax consequences associated with these items. The financial impact of the acquisition on a GAAP basis cannot be estimated until the allocation of the purchase price is completed following the closing of the acquisition. However, salesforce.com currently expects that the dilutive impact of the acquisition to EPS will be significantly greater on a GAAP basis than a non-GAAP basis.
Radian6 is the leading social media monitoring, engagement and insights platform with over 2,400 customers including Dell, Kodak, PepsiCo, and UPS, as well as many of the world's leading public relations and marketing agencies. The first-ever Radian6 User Conference, Social 2011
Salesforce.com is the enterprise cloudcomputing company that has transformed the way companies collaborate and communicate. Salesforce.com is leading the effort to bring Cloud 2, the next paradigm for computing, to the enterprise by offering its customers the social collaboration, mobility and openness that are the hallmark of this new world. The company's platform and application services include:
o Salesforce Chatter, a private social network for your enterprise
o The Sales Cloud, for sales force automation and contact management
o The Service Cloud, for customer service and support solutions
o The Jigsaw Data Cloud, for ensuring data integrity and quality
o The Force.com platform, for custom application development
o Heroku, for building social and mobile apps in Ruby
o The AppExchange, the world's leading marketplace for enterprise cloud
Salesforce.com offers the fastest path to customer success with cloud computing. As of January 31, 2011, salesforce.com manages customer information for approximately 92,300 customers including Allianz Commercial, Dell, Japan Post, Kaiser Permanente, KONE, and SunTrust Banks.
CONTACT: Media, Katy Dormer, +1-415-882-2586, firstname.lastname@example.org, or Investors, David Havlek, +1-415-536-2171, email@example.com, both of salesforce.com
Web Site: www.radian6.com