Salesforce.com takes 300 million loan to pay the acquisition of ExactTarget

salesforceSalesforce.com has taken a $300 million loan from Bank of America to pay for its acquisition of ExactTarget which it acquired in June.

According to Techcrunch, Salesforce completed the loan last Thursday as part of closing the deal with ExactTarget. The total payment on the loan is due in 2016 and payable in quarterly installments equal to $7.5 million beginning at the end of September.

The company’s stock hit a high in May but since that time has dropped from $48 per share to as low as $36. Today the stock is hovering around $42 per share. In March, the company issued $1.15 billion in convertible debt. The company also has $528 million in debt stemming from convertible notes it issued in 2010. Reserves will have to be kept on hand in case the notes get converted.

Techcrunch also says "It is in a market with competitors that are much larger and have deeper pockets. IBM and SAP have made larger acquisitions but also have significant working capital. Salesforce has to stretch its cash to make acquisitions while its competitors have fewer concerns in that regard."


Editorial Staff @portada_online

Portada Staff

MORE FROM PORTADA

Amazon, Wal-Mart Drawing the Largest Numbers of Online Hispanic Shoppers in US

Amazon, Wal-Mart Drawing the Largest Numbers of Online Hispanic Shoppers in US

We looked at the top 15 online retail sites visited by Hispanic shoppers in the US and how they scored in number of visitors in May 2018.


Dentsu Aegis Network Acquires Agency Global Mind

Dentsu Aegis Network Acquires Agency Global Mind

This is the third Latin American acquisition this year after the Japanese giant acquired M8 and White Label in April. Global Mind will triple the headcount of iProspect and strengthen Dentsu Aegis' pan-regional reach. 


4 Truths and One Lie About Multicultural Marketing According to Mel Rodriguez & Co, Starcom, Walton Isaacson…

4 Truths and One Lie About Multicultural Marketing According to Mel Rodriguez & Co, Starcom, Walton Isaacson…

We talked to Melissa Rodriguez, Dana Bonkowski, Albert Thompson, and Teylez Perez about the future of brands in an increasingly multicultural world. Reports estimate that by 2065 Hispanics will account for one-quarter of U.S. population. Brands should be aware of this opportunity and find appropriate communication strategies.