Cloud computing giant Salesforce.com is jumping into the e-commerce game with Wednesday’s announcement that it will acquire Demandware for $2.8 billion.
Shares of Salesforce (CRM) were down 1% in midday trading, while Demandware (DWRE) shares surged 55%.
Founded in 2004 and based in Massachusetts, Demandware provides big retailers such as Adidas and Brooks Brothers with their cloud-based e-commerce solutions. Salesforce, founded here in 1999 by Marc Benioff, built its $56 billion market cap by helping companies streamline their sales operations via subscription-based cloud software.
In buying Demandware, Salesforce is jumping into a lucrative space whose players include German giant SAP and Silicon Valley’s Oracle, where Benioff was a top salesman. In 2019, U.S. companies will spend $2 billion on e-commerce software, a doubling from 2014, according to Forrester Research.
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SOURCE: USA Today, Brett Molina