Salesforce Buys Krux: What It Means

Salesforce.com, inc. (NYSE: CRM) has filed an 8-k that states that the company has entered into a definite agreement to acquire Krux Digital.

D.A. Davidson’s Jack Andrews maintained a Neutral rating on Salesforce, while lowering the price target from $86 to $80.

“The proposed transaction is expected to close during Salesforce’s FY4Q2017 ending January 31st and it will be financed with $340 million in cash and about ~$340 million in CRM’s common stock,” Andrews mentioned.

Krux Digital has raised $50 million over three rounds of venture capital funding since May 2010. Founded in 2010, the company offers a cloud-based data management platform that unifies data across different sources, analyses it and customizes the data according to each client’s preference, and then delivers the data across different channels.

Related Link: Salesforce's 'Dreamforce' Event Is Like Woodstock For Fans Of The Cloud

What Krux Offers

This platform interacts with more than two billion devices and browsers across the world, serving more than 20 billion pages per month and processing more than 1.5 million CRM records per month. Krux Digital serves more than 200 clients worldwide.

Andrews believes that “Krux will extend Salesforce’s Marketing Cloud segmentation and targeting capabilities with the goal of empowering companies to deliver more relevant and valuable customer experiences.”

This acquisition will be the sixth transaction that Salesforce.com has made over the past two and half months and the tenth in 2016, as compared to 13 acquisitions that the company completed from 2012 to 2015.

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