UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
April 10, 2014
Date of Report (date of earliest event reported)
SALESFORCE.COM, INC.
(Exact name of Registrant as specified in charter)
| Delaware | 001-32224 | 94-3320693 | ||
| (State or other jurisdiction of incorporation or organization) |
(Commission File Number) | (I.R.S. Employer Identification Number) |
The Landmark @ One Market, Suite 300
San Francisco CA 94105
(Address of principal executive offices)
(415) 901-7000
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01 Entry into a Material Definitive Agreement.
On April 10, 2014, salesforce.com, inc. (the “Company”) entered into an office lease agreement (the “Lease”) with Transbay Tower LLC to lease approximately 714,000 rentable square feet (the “Premises”) of an office building to be located at 415 Mission Street, San Francisco, California (the “Building”). The lease payments associated with the Lease will be approximately $560 million over the 15.5 year term of the Lease, beginning in the Company’s first quarter of fiscal year 2018, and the Company estimates that triple net operating expenses related to this Lease, also beginning in the Company’s first quarter of fiscal year 2018 through the term of the Lease, will be approximately $305 million. The Company expects to pay approximately $130 million for leasehold improvements, net of tenant improvement allowances, to be incurred as each phase is delivered, beginning in the Company’s first quarter of fiscal year 2018.
The Premises will be delivered, and will expire, in phases during the total term of the Lease. The first floors are scheduled to be delivered on or about April 1, 2017, and the last floors are scheduled to expire on September 30, 2032. The Company has the right to extend the term of the Lease for seven years, then the successive right to extend the term for an additional five years. Subject to certain terms and conditions, the Company also has the right to sublease, assign or transfer the Premises.
The Company’s press release announcing the Company’s entrance into the Lease is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K. The information in the press release attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 above is incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number |
Description | |
| 99.1 | Press Release dated April 11, 2014 | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: April 11, 2014 | salesforce.com, inc. | |||||
| By: | /s/ Burke F. Norton | |||||
| Burke F. Norton Chief Legal Officer | ||||||
EXHIBIT INDEX
| Exhibit Number |
Exhibit Title | |
| 99.1 | Press Release dated April 11, 2014 | |
Exhibit 99.1
Salesforce.com Unveils Salesforce Tower, Dramatically Expanding Its Worldwide
Headquarters in San Francisco
Salesforce Tower is currently under construction above the new Transbay Transit Center
Salesforce.com will lease more than half of the 1.4 million square foot building, adding more than
700,000 square feet to its urban campus
The world’s fastest growing top 10 software company expects to hire more than 1,000 people in
the Bay Area this year, expanding its footprint as San Francisco’s largest tech employer
SAN FRANCISCO—April 11, 2014—Salesforce.com (NYSE: CRM), the world’s #1 CRM platform, today unveiled Salesforce Tower, dramatically expanding its worldwide headquarters in San Francisco. Salesforce Tower is currently under construction by Boston Properties and Hines above the new Transbay Transit Center, adjacent to salesforce.com offices at 50 Fremont St. and 350 Mission St. in San Francisco. Salesforce.com will lease more than half of the 1.4 million square foot building, adding more than 700,000 square feet to its urban campus. The world’s fastest growing top 10 software company also expects to hire more than 1,000 people in the Bay Area this year, expanding its footprint as San Francisco’s largest tech employer.
Comments on the news
| • | “Salesforce Tower represents an incredible milestone in our company’s history—it will be the heart of our global headquarters in San Francisco,” said Marc Benioff, chairman and CEO, salesforce.com. “We founded salesforce.com in San Francisco 15 years ago and this expansion of our urban campus represents our commitment to growing in the city.” |
| • | “I am proud and excited to be a part of this historic moment as we welcome salesforce.com to the Transbay neighborhood and to their iconic future home in the Innovation Capital of the World,” said Mayor Ed Lee. “Salesforce.com is a tremendous partner to our City and our residents, bringing thousands of new jobs to San Francisco and solidifying the Transbay District as a leading destination for innovative companies. I want to thank Marc Benioff and salesforce.com for their commitment to start here, stay here and grow here in San Francisco and I can’t wait to see Salesforce Tower added to our world famous skyline.” |
| • | “We are pleased that salesforce.com will be our anchor tenant at Salesforce Tower—a building that will have a transformative impact on the San Francisco skyline. We are committed to making Salesforce Tower the most important business address in San Francisco,” said Mort Zuckerman, executive chairman, Boston Properties. |
Salesforce Tower—The Hub of Salesforce.com’s Urban Campus in the Transbay District
Salesforce.com, the world’s #1 CRM platform and a $4B market leader, will be the anchor tenant at Salesforce Tower, leasing more than half of the 61 story building located at 415 Mission St. Salesforce Tower will serve as the hub of salesforce.com’s urban campus, which spans a number of locations in downtown San Francisco and is expected to exceed 2 million square feet by 2017.
Salesforce Tower will feature a next-generation Executive Briefing Center (EBC) to showcase salesforce.com’s innovative platform and applications. The EBC will deliver an interactive, hands-on experience that brings the Salesforce1 Platform to life—from smartphones and wearable devices to connected toothbrushes and cars. Visitors will learn firsthand how to run their business from their phone, connect their products in the Internet of Things and connect with customers in a whole new way.
City’s Largest Tech Employer Continues to Grow in San Francisco
Salesforce.com was founded in San Francisco 15 years ago and today is the city’s largest technology employer and the world’s most innovative company three years in a row according to Forbes. Salesforce.com has more than 4,000 employees in the San Francisco Bay Area and more than 13,000 employees worldwide.
Salesforce.com is committed to the city of San Francisco and continues to grow and hire locally. Today, salesforce.com, one of Fortune’s Best Places to Work for the past six years, announced plans to hire more than 1,000 people in the Bay Area this year. Salesforce Tower’s proximity to the new Transbay Transit Center and other key amenities along the Market St. corridor will help salesforce.com recruit talent throughout the Bay Area. Job postings can be found at http://www.salesforce.com/company/dreamjob/.
Additional Information
| • | Find your #dreamjob: http://www.salesforce.com/company/dreamjob/ |
| • | Follow @Salesforce on Twitter |
| • | Like salesforce.com on Facebook: http://facebook.com/salesforce |
About salesforce.com
Salesforce.com is the world’s largest provider of customer relationship management (CRM) software. For more information about salesforce.com (NYSE: CRM), visit: www.salesforce.com.
Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase salesforce.com applications should make their purchase decisions based upon features that are currently available. Salesforce.com has headquarters in San Francisco, with offices in Europe and Asia, and trades on the New York Stock Exchange under the ticker symbol “CRM.” For more information please visit http://salesforce.com, or call 1-800-NO-SOFTWARE.
“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements related to, among other things, our real estate leases and hiring plans. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the company’s results could differ materially from the results expressed or implied by the forward-looking statements we make. Further information on factors that could affect the company’s results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time, including the company’s most recent Form 10-K. These documents are available on the SEC Filings section of the Investor Information section of the company’s website at www.salesforce.com/investor. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
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