Salesforce pays $ 300 million to merge with its external philanthropic arm Salesforce.org in a deal that will increase software giant's annual revenue by $ 150 million to $ 200 million, the company announced on Monday.
Salesforce.org is an official Salesforce software distributor that distributes grants and puts the company's software in the hands of non-profit organizations and discounted or non-profit organizations. With the new structure, the Group's discounted sales revenue will move in Salesforce's top line.
Rob Acker, CEO of Salesforce.org, continues to drive the device as an industry vertical focused on nonprofit and training, like Salesforce's marketing cloud vertical and sales cloud vertical.
As part of the deal, Salesforce.org switches from being a California Public Benefit Corporation to a California Business Corporation, according to the release.
The $ 300 million merger fee will go to the Salesforce.com Foundation, an independent nonprofit profit.
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Salesforce updated its guidance for the fiscal year 2020 to reflect fusion. The company estimates that its full-year revenue will increase $ 150 million to $ 200 million due to the combination. The company said in early March that it expects to make $ 15.95 billion to $ 16.05 billion in revenue by 2020.
It also expects to see adjusted earnings per share of $ 2.54 to 2.56 USD for Fiscal 2020, down from the March forecast of $ 2.74 to $ 2.76 per share.