Salesforce, perhaps the biggest name in CRM software, acquired cloud-based e-commerce platform Demandware last week for $2.8 billion. The union will create a new division within Salesforce called Salesforce Commerce Cloud, pitting the company against established e-commerce players like Amazon, Shopify and Magento. In a press release, the company quoted Gartner research that estimates worldwide spending on digital platforms will grow at more than 14 percent annually, reaching more than $8.5 billion by 2020. In addition to creating a new e-commerce division, the companies said Demandware’s customers, which include Barneys New York, Columbia Sportswear, L’Oreal, Vineyard Vines, Marks & Spencer, Adidas, and Kate Spade, will be able to leverage Salesforce’s sales, service, marketing, communities, analytics, IoT and platform solutions.
“Demandware is an amazing company—the global cloud leader in the multi-billion dollar digital commerce market,” said Marc Benioff, chairman and CEO of 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.”
The companies expect the acquisition to close by July 31, 2016, the end of Q2 for Salesforce’s fiscal year 2017.