Salesforce has announced that it’s merging with its external philanthropic arm Salesforce.org in a $300m (£229.8m) all-cash deal.
The deal, which was announced on Monday (April.15th), will see Salesforce.org transition from a California public benefit corporation into a business corporation.
The $300m fee will go to Salesforce.com Foundation, an independent non-profit, and distributed philanthropically.
As part of the merger, Rob Acker, CEO of Salesforce.org, will create a new non-profit and end-educational business vertical at Salesforce, that will be responsible for the sales, marketing and customer success of the Customer Success Platform.
The new business will also create a new vertical-focused cloud application for non-profits, education and philanthropy organisations.
“Combining Salesforce and Salesforce.org into a new non-profit and education vertical reinforces the strength of Salesforce’s philanthropic model,” the company wrote in a press release.
“Salesforce will extend this model by continuing to provide free and highly discounted software to non-profits and educational institutions around the world and investing in local communities through employee volunteering, strategic grants and matching employee giving up to $5,000 (£3.8k) per employee annually.”
Salesforce said it’s also updating its fiscal year guidance, saying the merger will boost the company’s full-year fiscal 2020 revenue by approximately $150m ($114.9m) to $200m (£153.2m), with the exact figure depending on the transaction closing date.
