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Salesforce will spend $ 300 million to merge with its external philanthropic arm, Salesforce.org, as part of an agreement that will increase the computer giant's annual revenue from $ 150 million to $ 200 million, the company said today. on Monday.
Salesforce.org is an official Salesforce software reseller that distributes grants and makes the company's software available to nonprofit organizations and educational institutions, at a discounted price or free of charge. With the new structure, the group's up-to-date business figure will be integrated into the Salesforce hierarchy.
Rob Acker, CEO of Salesforce.org, will continue to manage the unit as an industry-focused non-profit and educational organization, similar to Salesforce's cloud marketing and vertical sales.
As part of the deal, Salesforce.org, which is moving from a California public-interest corporation to a California-based commercial corporation, says the release.
The $ 300 million merger fee will go to the Salesforce.com Foundation, an independent non-profit organization.
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Salesforce has updated its guidance for fiscal year 2020 to reflect the merger. The company expects its revenue for the full year will increase from $ 150 million to $ 200 million due to the combination. The company announced in early March that it hoped to generate between $ 15.95 billion and $ 16.05 billion in revenue in 2020.
It also expects an adjusted earnings per share of $ 2.54 to $ 2.56 for fiscal year 2020, down from its March forecast of $ 2.74 to $ 2.76 per year. action.
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