News: SAAS giant to buy enterprise web ecommerce software developer to build $1bn Commerce cloud
Salesforce is to buy Demandware a US provider of enterprise cloud commerce solutions for $75 per share in cash in a deal worth $2.8 billion.
The transaction is expected to close in the second quarter of Salesforce’s fiscal year 2017, ending July 31, 2016.
"Demandware is an amazing company — the global cloud leader in the multi-billion dollar digital commerce market," said Marc Benioff, chairman and CEO, Salesforce. "With Demandware, Salesforce will be well positioned to deliver the future of commerce as part of our Customer Success Platform and create yet another billion dollar cloud."
"Demandware and Salesforce share the same passionate focus on customer success," said Tom Ebling, CEO, Demandware.
"Becoming part of Salesforce will accelerate our vision to empower the world’s leading brands with the most innovative digital commerce solutions that enable them to connect 1:1 with customers across any channel."
According to Gartner, worldwide spending on digital commerce platforms is expected to grow at over 14 percent annually, reaching $8.544 billion by 2020 (Gartner, Inc. Forecast: Enterprise Software Markets, Worldwide, 2013-2020, 1Q16 Update, March 17, 2016).
In a statement the company said Salesforce’s acquisition of Demandware, a recognized leader in the space, will extend the company’s CRM leadership and position it to capture this multi-billion dollar digital commerce market with what will be the new Salesforce Commerce Cloud.
The Salesforce Commerce Cloud will be an integral part of Salesforce’s Customer Success Platform, creating opportunities for companies to connect with their customers in entirely new ways. Salesforce customers will have access to the industry’s leading enterprise cloud commerce platform, and Demandware’s customers will be able to leverage Salesforce’s leading sales, service, marketing, communities, analytics, IoT and platform solutions to deliver a more comprehensive, personalized consumer experience.
Demandware enables leading global brands including Design Within Reach, Lands’ End, L’Oreal and Marks & Spencer to deliver personalized, 1:1 experiences for consumers and power their commerce across the web, mobile, social and in the store.
Both companies issued blogs Salesforce,