Salesforce.com (CRM) acquired Heroku for some $212 million net of cash acquired. Heroku is the leading Ruby application platform-as-a-service, powering more than 105,000 next-generation social and mobile cloud applications. I know this because that is what Salesforce said in their press release. Salesforce.com and its chairman and CEO Marc Benioff like never exaggerate anything.
Heroku was founded in 2007 by Orion Henry, James Lindenbaum and Adam Wiggins. Heroku’s investors include Baseline Ventures, Harrison Metal Capital, Ignition Partners, Redpoint Ventures and Y Combinator. Based in San Francisco, Heroku has about 30 employees. Should be a nice pay-day all around.
The question always becomes who got the better end of the deal. Sure it sounds like a good strategic fit.But with any growth opportunity additional capital will soon be required in great quantities. Were the investors ready to continue backing it and looking at potential dilution? Has salesforce.com taken on a hidden capex liability? No comment about what the future holds other than it will be a wildly successful transaction if you listen to Marc Benioff.
Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post.
- Heroku: Serving Up 100,000 Apps (nytimes.com)
- Salesforce.com Takes a Shot at Oracle with New Database.com (dailyfinance.com)
- Heroku Extends Itself Into Facebook With Apigee Beta (allfacebook.com)
- Can Heroku Become the Official Cloud of Facebook Apps? (nytimes.com)
- Can Heroku Become the Official Cloud of Facebook Apps? (gigaom.com)