scoops up Buddy Media for $689 million

The company says that the transaction will be completed in the fiscal third quarter ended October 31, and will include both cash and Salesforce equity. has officially entered into an agreement to acquire Buddy Media, the companies announced today.

According to enterprise cloud-computing firm, it will pay $689 million in cash and equity to acquire the social media marketing company, confirming earlier reports that the firms were nearing a deal. The companies expect the deal to close during Salesforce's fiscal third quarter ended October 31.

For Salesforce, the synergy between the companies made the deal. Salesforce currently offers a "social media listening platform" called Radian 6 that the company says, will be vastly improved by Buddy Media's social media marketing service.

" now has the number one players in social listening and marketing - Radian6 and Buddy Media," Marc Benioff, chairman and CEO of said today in a statement. "With CMOs surpassing CIOs in spend on technology within the next five years, our Marketing Cloud leadership will allow us to capitalize on this massive opportunity."

Under the terms of the deal, Salesforce will pay Buddy Media $467 million in cash. Another $184 million will come in the form of Salesforce stock. The remaining $38 million will include vested Salesforce options and restricted stock units.

In pre-market trading, is trading down nearly 2 percent this morning to $128.46 following news of the acquisition.

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