Salesforce is at it again––the CRM powerhouse is making yet another acquisition as it continues to expand into the marketing and ad tech space. On the cusp of Dreamforce ‘16, the company confirmed that it has agreed to purchase Krux, a data management platform (DMP) that captures data signatures across multiple digital advertising channels.
Salesforce said it would pay $340 million in cash (plus stock) to complete the purchase, bringing the total to roughly $700 million, according to an article featured on AdExchanger.
Buying Krux should provide Salesforce users with uniquely designed solutions, such as advanced segmentation and audience management, that can be accessed from within the Salesforce Marketing Cloud (SMC).
While Krux’s acquisition is certainly a big move, in hindsight there was foreshadowing of a potential deal. Tom Chavez and Vivek S. Vaidya, co-founders of Krux, had already been working alongside Salesforce as partners. The strength of their relationship was echoed by Chavez in Krux’s own announcement of the news.
“As a part of the Salesforce ecosystem, we’ve had the opportunity to work closely with the Salesforce team to create integrations that make our customers even more successful. Beyond the strategic and technology fit, we believe our companies’ core values, which include innovation, trust, transparency, and most importantly customer success, are in perfect alignment and offer an exciting foundation upon which we can continue building the industry’s smartest Marketing Cloud.”Co-founder of Krux, Tom Chavez
Salesforce’s acquisition of a DMP bolsters the quality and capabilities of its marketing cloud as the company continues battle with the likes of Oracle and Adobe, two of its main competitors.
Due to intense competition and its own initiative, Salesforce has also recently rolled out an artificial intelligence-powered service, aptly named Einstein, that helps improve company products across the board by making predictions and prioritizing tasks. Chavez also had some thoughts on what Krux can do when coupled with Einstein.
“Krux will extend the Salesforce Marketing Cloud’s audience segmentation and targeting capabilities to power consumer marketing with even more precision, at scale,” he wrote. “In addition, Krux will feed Salesforce Einstein with billions of new signals, enabling companies to be even smarter about their customers. Krux and Salesforce together will empower every company to deliver more relevant and valuable consumer experiences across every touchpoint.”
As the capabilities of Einstein continue to evolve, it will be interesting to see Salesforce’s movement in the marketing and advertising space, and its continued push into artificial intelligence.