Salesforce

Cloud-based customer-relations giant Salesforce agreed today to buy Demandware, a cloud commerce firm based in Burlington, Mass., for roughly $2.8 billion.

Through what it calls Commerce Cloud, Demandware enables retailers to let customers pay for purchases online, assists in product promotion and pricing, helps with product fulfillment and provides retailers with insights into sales trends.

“Demandware is the global cloud leader in the multi-billion-dollar digital commerce market,” said Marc Benioff, CEO of Salesforce, in a prepared statement. “With Demandware, Salesforce will be well positioned to deliver the future of commerce . . . and create yet another billion-dollar cloud.”

Salesforce plans to integrate the new technology into what it is calling its Salesforce Commerce Cloud, Benioff said.

demandwareThe purchase of an e-commerce firm “plugs a big hole” in Salesforce’s portfolio, ZDNet observed.

The transaction, structured as a tender offer of $75 cash per share, is expected to close by July 31, the end of Salesforce’s FY2017 second quarter. It will increase Saleforce’s quarterly revenue by up to $10 million, the company said.

For the full FY2017, Salesforce is projecting revenue of $8.26 billion to $8.32 billion, up 24 percent to 25 percent year-over-year.

[Editor’s Note: Salesforce is a GeekWire underwriting sponsor.]

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