Salesforce.com Inc. announced Wednesday a deal to buy enterprise cloud commerce company Demandware Inc. in a cash deal valued at $2.8 billion. As part of the deal, Salesforce will launch a tender offer for $75 a share for each Demandware share outstanding, which represents a 56% premium to Tuesday's closing price. Demandware's stock rocketed 56% in premarket trade, while Salesforce shares slipped 1.4%. The deal, expected to close in the second quarter of fiscal 2017, which ends this July, is expected to add $100 million to $120 million to fiscal 2017 revenue, but reduce adjusted earnings per share by 7 cents. Salesforce said it now expects fiscal second-quarter adjusted EPS of 21 cents to 22 cents and revenue of $2.01 billion to $2.03 billion. The FactSet consensus is for EPS of 25 cents and revenue of $2.01 billion.
Copyright © 2016 MarketWatch, Inc.
Continue Reading Below