Salesforce.com Inc is repositioning to define a new way of providing software to and working with nonprofits like educational institutes and charity organizations.
In a latest move, announced on last Monday, Salesforce said that it would integrate Salesforce.org, an independent nonprofit social enterprise that resells Salesforce’s software and services to the nonprofit sector, into itself forming a larger-scale, new nonprofit and educational vertical.
Rob Acker, the current CEO of Salesforce.org, will be leading the new vertical as part of the move.
In the process of combining the two organizations, Salesforce, as part of the deal, will be buying all shares of Salesforce.org in a one-time cash transaction of $300 after converting the Salesforce.org seeing from a California public benefit corporation into a California business corporation, said the Salesforce.
The amount so received will then be distributed to another independent public benefit corporation Salesforce.com Foundation which will further use it for future philanthropic purposes. Salesforce, without specifying the amount, said, it will also be making further contributions to the foundation.
Depending on timing of the deal closing, combining the two organizations will be adding an amount of between $150 million and $200 million to the revenue of Salesforce for the full year, said the company.
Salesforce.org remained an assisting medium for the Salesforce providing its software for free or on discounted rates to nonprofits, philanthropic organizations and educational institutions reaching to over 40,000 organizations in numbers and about $260 million in grants till date, and the company said it will continue these practices, but this time it will be aligned with the company’s bigger business operations for developing and selling software and services on commercial scale as well.
Salesforce is expecting the deal to be close in second or third quarter of this year which is subject to approval from the Attorney General of California and other statutory and customary conditions.
