The agreement allows Salesforce to commence a tender offer for all outstanding shares of Demandware for $75.00 per share, in cash. The transaction is expected to close in the second quarter of Salesforce’s fiscal year 2017, ending July 31, 2016, subject to the satisfaction of customary closing conditions.
“Demandware is an amazing company—the global cloud leader in the multi-billion dollar digital commerce market,” said Marc Benioff, chairman and CEO, Salesforce.
“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.”
Demandware has been associated with leading global brands like L’Oreal, Marks & Spencer among others, helping them achieve personalized, one-to-one experiences for consumers and power their commerce across the web, mobile, social and in the store. Once the tender offer ceases, the company’s shares not tendered in will be converted in a second step merger into the right to receive the same $75.00 per share in cash paid in the tender offer.
“Demandware and Salesforce share the same passionate focus on customer success,” said Tom Ebling, CEO, Demandware.
“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.”
Salesforce’s acquisition of the company will boost its CRM leadership and position it to capture this multi-billion dollar digital commerce market with what will be the new Salesforce Commerce Cloud.
According to Gartner, worldwide spending on digital commerce platforms is expected to grow at over 14 percent annually, reaching $8.544 billion by 2020.