, inc. (NYSE:CRM) announced today of its plans to acquire all the outstanding shares of ExactTarget Inc (NYSE:ET), which sells marketing software. In all cash deal valued at $2.5 billion, Salesforce will pay $33.75 in cash for each share of ExactTarget. The price represents a 50 percent premium over yesterday’s close of $22.

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“The addition of ExactTarget makes, inc. (NYSE:CRM) the starting place for every company and puts, inc. (NYSE:CRM) in the pole position to capture this opportunity,” Marc Benioff, chairman and chief executive of, said in a statement.

Shift towards marketing software:

Initially,, inc. (NYSE:CRM) started as the seller of sales-automation software, but in recent years the company has been making a move towards marketing software. The objective of the acquisition is to pocket some revenues from the transition of marketing dollars from print to digital media.

According to a report, consumer technology companies are expected to switch one-third of their ad budget to online efforts within two years.

Salesforce CEO Marc Benioff Acquired Buddy Media:

The acquisitive Salesforce CEO Marc Benioff acquired Buddy Media (helps marketers run social ad campaigns), a year ago for $689 million. In 2011, Salesforce acquired social media tracker Radian6 for $340 million.

About ExactTarget:

Similar to, inc. (NYSE:CRM), ExactTarget Inc (NYSE:ET) sells its software directly to the marketing departments of the companies. ExactTarget clients list includes names like NIKE, Inc. (NYSE:NKE), The Coca-Cola Company (NYSE:KO) and The Gap Inc. (NYSE:GPS), which used the formers software to manage their email and digital marketing campaigns.

The software company was founded by three friends in 2000, with an initial investment of $200,000. For 2013, ExactTarget raised its revenue guidance to $379 million. For the most recent quarter, company missed the earnings estimates.

The closes rival of ExactTarget Inc (NYSE:ET) is Constant Contact, MailChimp and Responsys.

Affect On Salesforce Earnings:

The acquisition is expected to lower, inc. (NYSE:CRM) earnings by 16 cents and will contribute $120 million to $125 million to the revenue in fiscal 2014. For the second quarter, the deal is estimated to lower the adjusted earnings by around 5 cents per share.

The deal will also benefit venture firms Battery Ventures, Scale Ventures, Montagu Newhall and Technology Crossover Ventures. All three venture firms invested $145 million in the company in the first round of investing, in 2009.

The deal is expected to be completed by July 31 and has been approved by the board of both companies., inc. (NYSE:CRM) was advised by Bank of America Merrill Lynch while ExactTarget was advised by JPMorgan Chase & Co. (NYSE:JPM).

In the premarket trading, stocks of ExactTarget Inc (NYSE:ET) inched up to the bid price while the, inc. (NYSE:CRM) shares were up marginally.