Salesforce (NYSE: CRM), the world’s leading CRM company, agreed to acquire Demandware (NYSE: DWRE), a leading provider of enterprise cloud commerce solutions, in a $2.8 billion deal.
Salesforce will commence a tender offer at $75.00 per Demandware share, in cash. The transaction is expected to close by July 31, 2016, subject to the satisfaction of customary closing condition.
Demandware sells its cloud based solutions to multinational corporations, retailers, and branded manufacturers in apparel and footwear, health and beauty, home and garden, sporting goods, general merchandise, and other categories. Demandware enables leading global brands including Design Within Reach, Lands’ End, L’Oreal and Marks & Spencer to deliver personalized, one-on-one web, mobile, social and in-store commerce experiences. Demandware, formerly known as SSE Holdings Inc, was founded in 2004 and is headquartered in Burlington, Massachusetts.
“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 research firm Gartner Inc., worldwide spending on digital commerce platforms is expected to grow at over 14% annually, reaching $8.5 billion by 2020.
The acquisition is expected to increase Salesforce’s FY17 total revenue by approximately $100 million to $120 million, and full-year operating cash flow growth is now expected to be in the range of 22% to 23% year-over-year, the company said.
Salesforce provides enterprise cloud computing solutions, with a focus on customer relationship management to various businesses and industries worldwide. The company was founded in 1999 and is headquartered in San Francisco, California. It has a market capitalization of $56.47 billion, as of June 1, 2016.