With one acquisition, Salesforce is now a major player in e-commerce. The customer relationship management (CRM) giant announced plans to buy cloud enterprise commerce software provider Demandware for approximately $2.8 billion, the largest acquisition in Salesforce history.
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The Salesforce investor release states the company plans to roll Demandware into a new Salesforce Commerce Cloud, joining the Salesforce Marketing Cloud, Salesforce IoT Cloud, sales, analytics, app, and help desk clouds in its blue sky's worth of cloud-based platforms. Salesforce CEO Marc Benioff said buying Demandware represents a huge step for Salesforce into the retail and e-commerce space.
" Demandware is an amazing company—the global cloud leader in the multi-billion dollar digital commerce market," said Benioff. "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."
Founded in 2004, the start-up raised more than $54 million in venture capital (VC) before going public in 2012. Demandware's e-commerce platform, which counts global retailers like Adidas, Brooks Brothers, and L'Oreal as customers, is targeted toward designing personalized consumer experiences incorporating web, mobile, and store-based experiences with social media integration. The cloud platform rolls digital products and sales, brick-and-mortar store operations, and point-of-sale (POS) software into a centralized experience for business users and customers.
The acquisition is significant not just monetarily, and not just in giving Salesforce access to a leading e-commerce platform and a customer base of global brands. The deal also unifies more processes for businesses, integrating CRM customer data, marketing, and analytics into digital commerce and putting Salesforce head-to-head with the likes of Amazon and Shopify.
"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," Demandware CEO Tom Ebling said in a statement.
Salesforce is paying $75 per share in the cash deal, which is expected to close in the second quarter of Salesforce's fiscal year (FY) 2017, ending July 31, 2016 .