UPDATE 1-Salesforce to buy Heroku to expand in cloud computing

* To pay $ 212 mln in cash

* To issue stock worth $27 mln to Heroku employees

* To buy unvested Heroku stock worth $10 mln

* Sees deal hurting Q4 adj EPS by $0.02

* Deal could hurt 2012 adj EPS by $0.12-$0.13

Dec 8 (BestGrowthStock) – Salesforce.com Inc (CRM.N: ) said it has
agreed to buy privately held cloud-platform company Heroku for
up to $249 million to expand its presence in cloud computing
related to social and mobile applications.

Salesforce said it would pay $212 million net of cash. It
also plans to issue $27 million in stock to Heroku employees
and pay $10 million in cash for unvested Heroku shares as part
of the deal.

Salesforce expects the deal to hurt fourth-quarter adjusted
earnings by 2 cents a share and by 12-13 cents a share in
fiscal 2012.

The company added it does not expect Heroku to contribute
materially to revenue till fiscal 2012.

San Francisco-based Heroku is a cloud-software platform
company which charges developers to host applications written
in the Ruby programming language on its servers.

Ruby is a programming language used to write social and
mobile applications for Internet firms like Groupon, Hulu and
Twitter. More than 105,000 web apps run on Heroku’s application
platform, according to the company.

Salesforce, which competes with SAP AG (SAPG.DE: ), Microsoft
(MSFT.O: ), Oracle (ORCL.O: ) and NetSuite (N.N: ), specializes in
cloud computing services which run software applications on its
computer servers on behalf of clients.

The company’s shares, which have rise 26 percent since it
posted strong quarterly results last month, closed at $145.24
on Tuesday on the New York Stock Exchange.
(Reporting by Himank Sharma in Bangalore; Eidting by Roshni
Menon)

UPDATE 1-Salesforce to buy Heroku to expand in cloud computing