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Salesforce acquires Demandware for $2.8 B to enter the enterprise e-commerce game

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The #1 CRM platform Salesforce, after transforming the way brands interact with customers, now wants to help transform how enterprises sell goods and generate leads. As announced today in a couple of blog posts, the company has spent over $2.8 billion to acquire the cloud-based enterprise e-commerce solution, Demandware.

Both cloud-based companies have signed a definitive agreement, according to which Salesforce will acquire Demandware for approximately $2.8 billion net of cash required and offer $75 per share(this too in cash) for all outstanding shares of the cloud-based e-commerce company.

This partnership will extend Salesforce’s reach beyond the cloud-based CRM platform to the multi-million dollar e-commerce market. The integration of Demandware into the vast cloud technologies of the company will lead to the formation of a new business division called the ‘Salesforce Commerce Cloud‘.

Marc Benioff, chairman and CEO of Salesforce is ecstatic for this partnership and says that,

Demandware is an amazing company—the global cloud leader in the multi-billion dollar digital commerce market.

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.

Salesforce Commerce Cloud wants to transform the e-commerce and cloud platform to be an integral part of the company’s success, creating opportunities for enterprises to connect and reach out to their valued customer in new and exciting ways. This partnership will allow Demandware customers to leverage the cloud computing technologies of Salesforce, while Salesforce customer will now have a chance to enjoy an enterprise e-commerce solution with the already well-built cloud platform.

The company also expect that this acquisition will lead to a ballistic growth in the company’s revenue in the fiscal year FY’17, showing a sharp rise of over $100 million – $120 million. And the transaction fees for using the services of the cloud platform are expected to go down by a meager $0.03 USD.

Tom Ebling, CEO of Demandware believes that both the companies aim for the same goal of empowering the retailers to create and enhance their brand value. He further adds that,

Demandware and Salesforce share the same passionate focus on customer success. 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.

This is a massive deal for Salesforce, as it has acquired a solution that shares the same ‘customer first’ mentality. This will get Salesforce a new segment of customers who want to use the cloud to analyse their customer positioning and market their products. This will now enable global brand leaders including Design Within Reach, Lands’ End, L’Oreal and Marks & Spencer to deliver a personalized experience to all its customers across all platforms.

E-commerce is one of the biggest business to go big and expand as it gave users a chance to stay home and purchase everything they desire without any hassles. According to Gartner, this proposition is still going strong and is expected to grow at over 14 percent annually, reaching $8.544 billion by 2020.

The cloud service provider believes that Demandware’s diverse e-commerce platform 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.


A hands-on guy fascinated by new apps, technologies and enterprise products.

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