Today Salesforce announced that it would spend $2.8 billion to acquire Demandware, a cloud-based provider of e-commerce services to businesses. The deal will serve as a catalyst in the launch of a new cloud platform, what will be known as the new, Salesforce Commerce Cloud.
Salesforce projects that the acquisition will have a gaining financial impact for the company, expecting a $20 million dollar increase in revenue in fiscal year 2017, with a year-over-year projected growth now expected to be in the range of 22% to 23%. Go Salesforce, Go!
Demandware’s Press release explains that Salesforce and Demandware have entered into a definitive agreement under the terms that, “Salesforce will commence a tender offer for all outstanding shares of Demandware for $75.00 per share, in cash, and 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, in a statement. “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.”
In the past, Demandware has received several honors, including being ranked 9th in the e-commerce platform category of the 2014 Internet Retailer Top Tech Guide. Additionally, Demandware was ranked #563 on Inc. magazine’s 5000 list in 2012.
For more information about what this acquisition means for Salesforce and its customers, visit Salesforce’s Investor Relations site.