- Salesforce (CRM) will acquire Demandware in a transaction worth ~$2.8 bln (net of cash acquired). Under the terms of the agreement, Salesforce will commence a tender offer for all outstanding shares of Demandware for $75.00 per share, in cash. The transaction is expected to close in the second quarter of Salesforce's fiscal year 2017, ending July 31, 2016.
- The transaction is expected to close in the second quarter of Salesforce's fiscal year 2017, ending July 31, 2016. Following the successful completion of the tender offer, Demandware shares not tendered in the tender offer will be converted in a second step merger into the right to receive the same $75.00 per share in cash paid in the tender offer.
Updated Guidance:
- FY17 Revenue: The acquisition is expected to increase Salesforce's FY17 total revenue by approximately $100 mln to $120 mln.
- This estimate reflects an approximately $50 mln reduction relating to fair value adjustments to deferred revenue and unbilled deferred revenue, adjustments related to the combined customer base, and inter-company revenue elimination.
- The acquisition is expected to decrease FY17 non-GAAP diluted EPS by approximately $0.07. This estimate reflects standard integration costs and transaction fees expected to be in the range of $30 mln.
- Q2 FY17 Revenue: The acquisition is expected to increase Salesforce's Q2 FY17 total revenue by approximately $0 mln to $10 mln. Q2 FY17 non-GAAP EPS: Transaction fees related to the acquisition are expected to reduce Q2 FY17 diluted non-GAAP EPS by approximately $0.03.
- Based on the above, Salesforce is updating its guidance previously reported on May 18, 2016, as follows:
- Q2 FY17 Guidance: Revenue for Salesforce's fiscal second quarter 2017 is projected to be in the range of $2.005 bln to $2.025 bln, an increase of 23% to 24% year-over-year.
No comments:
Post a Comment