By Monica langley
Salesforce.com Inc. agreed to acquire San Francisco startup Krux, in a bid by the cloud-software giant to bolster its marketing-data and analytics segment.
Salesforce is paying about $700 million, split equally in cash and stock, for closely held Krux, according to people familiar with the acquisition.
Krux is a six-year-old firm that provides companies with information enabling them to hone their marketing and advertising. The company, which already has a partnership with Salesforce, mines data across the internet and analyzes it to better understand and target customers.
Krux will supplement Salesforce’s increasing artificial-intelligence capacity in its so-called marketing cloud, Salesforce product head Alex Dayon said in an interview.
Krux uses artificial intelligence to analyze trillions of signals to better identify audience segments for targeted marketing and advertising by its clients, which include big names from Ticketmaster to L’Oréal, Krux founder and Chief Executive Tom Chavez said in a separate interview.
Salesforce, whose annual Dreamforce customer conference takes place this week in San Francisco, is known for providing cloud-based services for sales, service and marketing. In June, it announced an agreement to buy another existing partner, Demandware Inc., for $2.8 billion. The deal added e-commerce to Salesforce’s portfolio and was the largest acquisition to date for the company, which has stepped up its hunt for acquisitions as competition in the industry intensifies.
View source version on The Wall Street Journal.