announced this afternoon that it will raise $1 billion in convertible debt with the potential for $150 million more.

The cloud computing giant will float convertible bonds due in 2018. Since the news was released, shares are down 35 cents at $185.59.

We reached out to multiple representatives from the company, who would not offer further comment.

The company will use a portion of the proceeds for strategic acquisitions. Salesforce is no stranger to M&A: In the past two years, its corporate development team has picked up over half a dozen small companies.

In a statement, the company revealed the funds will be used for “possible acquisitions of, or investments in, complementary businesses, services or technologies, working capital and capital expenditures.”

The company told ZDnet that it will take steps to minimize dilution once the convertible bonds convert to shares.

Salesforce is currently worth $27 billion and reached its 2012 goal to complete $3 billion in sales. In its most recent earnings report, it witnessed an improvement in revenues from all its business segments.

Marc Benioff photo via Sean Ludwig/VentureBeat