Salesforce.com to Buy Jigsaw

Salesforce.com is buying online business directory company Jigsaw for roughly $142 million in cash and a "performance-based contingent earn out" of up to 10% of the purchase price.
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NEW YORK (TheStreet) -- Salesforce.com (CRM) - Get Report announced today that it is buying online business directory company Jigsaw for about $142 million in cash and a "performance-based contingent earn out" of up to 10% of the purchase price.

Salesforce.com says that the proposed acquisition will mark salesforce.com's entry into the $3 billion market for cloud-based business-to-business data services, and will create new opportunities for salesforce.com to partner with information services companies like

D&B

(DNB)

,

Hoover's

and

LexisNexis

.

The acquisition is expected to have no material impact to salesforce.com's fiscal first quarter ending April 30, 2010. However, the transaction is expected to affect salesforce.com's results in its fiscal second through fourth quarters.

GAAP revenue from the acquisition is expected to be about $10 million to $15 million and non-GAAP revenue, excluding the deferred revenue write-down related to the transaction, is expected to be about $17 million to $22 million. The transaction is also expected to reduce salesforce.com's GAAP earnings by about 20 to 22 cents a share, and non-GAAP earnings by about 6 cents to 8 cents a share in fiscal year 2011.

The deal is expected to close in the second quarter of fiscal year 2011.

-- Reported by Andrea Tse in New York

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