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New Acquisition for an Old Cramer Fave

(Click for video linked to a searchable transcript of this Mad Money topic)

It's been a Cramer fave for quite some time. But what does the Mad Money host think about its latest multi-billion dollar acquisition?

The stock in question is Salesforce.com and on Tuesday the company acquired ExactTarget for $2.5 billion or 33.75 per share, a 53 percent premium to the stock's closing on Monday.

ExactTarget provides internet-based marketing software used by businesses to personalize e-mail and text messages and to run social media ad campaigns.. The company also helps companies reach customers on social networks through mobile devices. It has 6,000 customers, including Coca-Cola, Gap and Nike.

This is the eighth acquisition made by Salesforce.com in the past year and its second big purchase focused on social media. It acquired Buddy Media, which helps big brands manage Facebook and Twitter pages, in August.

Adam Jeffery | CNBC

Wall Street's knee-jerk reaction was to sell – by the close on Tuesday shares slipped almost 8%. Largely the Street was focused on the costs associated with the deal.

Salesforce.com, which had about $3.1 billion in cash and marketable securities at the end of the first quarter, said it would finance the transaction through cash on hand and a term loan. The acquisition is expected to reduce fiscal 2014 earnings by about 16 cents per share, Salesforce.com said.

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For the long-term Cramer applauds the acquisition.

"Two years ago, interactive marketing was a $34.5 billion market in the U.S., but by 2016, it should be a $76 billion market, more than doubling over just five years."

That could put Salesforce.com in the sweet spot – down the road.

"Considering the stock is down about 20% over the past 3 months, the pullback could present opportunity for investors looking for growth, Cramer said. "Looking at that metric, Salesforce.com has the best growth characteristics of any company I follow." On May 23rd he called Salesforce.com 'the king of cloud.'

However in the near-term Cramer is a little more skeptical.

"Right now the sentiment in the stock is negative and momentum is lower. Salesforce is a high multiple stock and currently all high multiple stocks have fallen out of favor. I think patience will be a virtue."

Call Cramer: 1-800-743-CNBC

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