June 01--Salesforce.com Inc. has acquired e-commerce platform maker Demandware Inc. in a transaction worth about $2.8 billion, as the cloud-computing software firm looks to become more of a one-stop shop for companies that want to sell things online.
San Francisco-based Salesforce said it would pay $75 a share in cash for all outstanding shares of Demandware, a premium of more than 56% over Tuesday's closing price. The transaction is expected to close in Salesforce's current quarter, which ends July 31.
Salesforce already offers direct marketing and customer support software for online vendors. By adding Demandware, it will also be able to offer software that handles online transactions.
Salesforce Chief Executive Marc Benioff called Demandware the "global cloud leader" in the e-commerce market.
"With Demandware, Salesforce will be well positioned to deliver the future of commerce ... and create yet another billion-dollar cloud," he said in a statement.
Founded in 2004, Demandware makes a cloud-based platform that businesses use to process e-commerce transactions. Among the Burlington, Mass., company's customers are cosmetics firm L'Oreal, clothing seller Land's End and British retailer Marks Spencer.
By acquiring Demandware and its e-commerce platform, Salesforce now has a more complete stable of software for businesses operating in the digital space, said Tom Roderick, managing director of software research at Stifel.
In 2013, Salesforce acquired ExactTarget, now known as Salesforce Marketing Cloud, which enables retailers to reach out to customers directly with targeted offers. The company also has a service cloud offering, which handles customer support. Now, with the Demandware purchase, Salesforce will add the Salesforce Commerce Cloud to the mix.
All of this ties in with the bigger picture for the retail industry: As traditional bricks-and-mortar stores put up disappointing results, e-commerce spending continues to grow.
"The shift toward this omnichannel theme is really apparent, and software vendors have recognized that," Roderick said. "They [Salesforce] want to be able to market to you one-to-one, target you one-to-one and now sell to you and deliver to you one-to-one, all in a digital world."
Shares of Salesforce slipped 0.2% to close at $83.54. Demandware shares surged nearly 56% to $74.81.
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UPDATES:
1:39 p.m.: This article was updated with stocks' closing prices.
This article was originally published at 9:36 a.m.
