create your online store

Back to News

Salesforce to acquire Demandware

Update On :07 June 2016

Salesforce to acquire Demandware

Cloud-based software maker Salesforce Inc said it would buy Demandware Inc, whose software is used by businesses to run e-commerce websites, for about $2.8 billion. The deal would help Salesforce open a new front as it seeks to take more market share from traditional software providers such as Oracle Corp and SAP AG, both of which already offer cloud-based e-commerce services.

The e-commerce market has been growing at a blistering pace as retailers expand their online presence, boosting demand for software that helps manage functions such as payment processing and inventory management.

Salesforce's cash offer of $75.00 per share represents a 56.3% premium to Demandware's Tuesday closing. The lofty premium indicates that multiple bidders were likely at the table for Demandware, Stifel Nicolaus & Co analyst Thomas Roderick said, naming Adobe Systems Inc and Oracle as the other possible contenders.

Demandware, whose customers include Lands' End Inc, L'Oreal SA and Marks and Spencer Group Plc, has reported sales growth of more than 30% for the last 10 quarters.

The deal, slated to close in Salesforce's second quarter ending July, is expected to increase the company's 2017 revenue by about $100 million-$120 million.

Salesforce had forecast fiscal 2017 revenue of $8.16 billion-$8.20 billion in May. However, Salesforce said it now expected an adjusted profit of 93 cents-95 cents per share for the full year, down from its previous forecast of $1-$1.02.

BofA Merrill Lynch is Salesforce's financial adviser for the deal, while Goldman Sachs is advising Demandware.

News Source From : http://timesofindia.indiatimes.com/tech/tech-news/Salesforce-aims-at-e-commerce-acquires-Demandware/articleshow/52617102.cms

Image Courtesy : http://blog.demandware.com/wp-content/uploads/2016/06/samson_blog-1-659x374.png

Popular post

create your online store
  Share