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Salesforce yesterday announced a move to reposition how it provides software to and works with non-profits like educational institutions and charities: the company announced that it would integrate Salesforce.org — which had been a reseller of Salesforce software and services to the nonprofit sector — into Salesforce itself as part of a larger, new nonprofit and education vertical. The new vertical, in turn, will be led by Rob Acker, the current CEO of Salesforce.org.
As part of the deal, Salesforce said it would pay $300 million in cash for all shares of Salesforce.org. The latter had existed as a California public benefit corporation, and now it will be converting into a California business corporation.
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Salesforce said that the $300 million, in turn, will be distributed to the another independent public benefit corporation called the Salesforce.com Foundation, which will use it for philanthropic purposes. Salesforce will be making further contributions to the Foundation, but did not specify the amount.
Salesforce also said that the combination will add between about $150 million and $200 million to the company’s full-year revenues, depending on when the deal closes.
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Salesforce.org had been a vehicle for the company to provide nonprofits, educational institutions and philanthropic organizations free or very discounted licenses to use its software, to the tune of some $260 million in grants distributed to over 40,000 organizations. Salesforce will continue that practice, but now that effort, it seems, will come in line with a bigger business operation in which Salesforce will also develop and sell commercial software and services as well.
“Combining Salesforce and Salesforce.org into a new nonprofit...
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