Salesforce.com Inc. is buying the social media marketing company Buddy Media in a cash-and-stock deal valued at about $689 million.
The San Francisco-based company said Monday that it will pay approximately $467 million in cash and $184 million in shares and $38 million in options and restricted stock for Buddy Media.
Salesforce.com's stock fell $2.79, or 2.1 percent, to $128.20 in premarket trading. It has traded between $94.09 and $164.75 over the past year.
Salesforce.com is a cloud computing company, enabling companies to store software and information on remote servers kept outside the office, rather than on the corporation's own machines. It has more than 100,00 customers.
Buddy Media, founded in 2007, allows customers to publish material, place ads and measure the effectiveness of social media marketing programs. It has almost 1,000 customers, including Ford Inc., Hewlett-Packard Co. and Mattel Inc.
The buyout, which was approved by Buddy Media's board, is expected to close in the fiscal third quarter.
Salesforce.com said that the transaction should not have any material impact on its second-quarter results. It should lower adjusted earnings by about 14 cents to 15 cents per share during the second half of fiscal 2013 and boost revenue by approximately $20 million to $25 million.
The company revised its fiscal 2013 guidance to account for the acquisition. It now expects adjusted earnings of $1.45 to $1.49 per share on revenue of about $2.99 billion to $3.03 billion.
Analysts polled by FactSet expected earnings of $1.63 per share on revenue of $3 billion.