decor decor
"A satisfied customer is the best business strategy of all."

-Michael LeBoeuf

Salesforce Acquires Demandware

Financial Information
  • Enterprise Value                                         $2.7 Billion
  • EV/LTM Revenue                                       10.5x
Transaction Facts
  • Salesforce.com, Inc. (NYSE:CRM) announced today that it has agreed to acquire Demandware, Inc. (NYSE: DWRE), a digital commerce company, at $75 per share (a 56% premium over Demandware’s closing trading price on Tuesday of $48).
  • The transaction offers Salesforce an e-commerce platform used by leading brands including Lands’ End, L’Oréal and Puma and others.
  • Salesforce expects the deal to increase its annual revenue $100 to $120 million, and increased its revenue guidance for FY17 to $8.26B to $8.32B from $8.16 to $8.20B.
  • The transaction is expected to close during Salesforce’s Q2 2017 (before July 31, 2016).
Paying the Price to Stay Ahead
  • Looking Ahead to A Growing Market: Salesforce is already the clear market leader in CRM, and continuing its growth means expanding its offerings. Gartner estimates digital commerce platforms spending will have an annual growth rate of more than 14% to reach $8.5 billion in 2020 – the acquisition of Demandware, a leader in this space, will strengthen Salesforce’s ability to capture this growing market.
  • High Demand Means High Price: Demandware’s 56% premium indicates that Salesforce was not the only buyer in play – the company’s high growth and attractive client portfolio would have attracted several cloud suitors such as Adobe Systems and Oracle.
  • New Space, New Opportunities: With this acquisition, Salesforce both expands its offerings and its customer base, enabling it to better leverage existing customers of both enterprises. In the ecommerce space it will find itself competing with other industry leaders, among them Amazon and eBay.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.
previous post Back to Articles next post

24 Apr 2024

Celestica (NYSE: CLS) to Acquire NCS Global from Heritage Holding

Financial Information Enterprise Value: $36M (and a possible earnout payment should certain post-closing financial conditions be met) Transaction Details Celestica has entered into a definitive agreement to acquire NCS Global, a US-based IT infrastructure and asset management business. The transaction is expected to close in May 2023 or earlier, subject to satisfaction of customary closing...

02 Apr 2024

CD&R to Acquire Presidio from BC Partners

Financial Information Not Disclosed Transaction Details Clayton Dubilier & Rice (CD&R) and BC Partners announced on April 2, 2024, that they have entered into a definitive agreement under which CD&R will acquire a majority ownership of Presidio. Funds affiliated with BC Partners will retain minority ownership interest. The transaction is expected to close in the...

06 Feb 2024

NWN Carousel acquired by American Securities

Financial Information Revenue: Approx. $900 million Enterprise Value: N/A Transaction Details NWN Carousel announced a transition of ownership from New State Capital Partners to affiliates of American Securities. This transition represents the success of significant investment, organic growth, M&A execution, operational excellence and innovation under ownership of New State Capital Partners. NWN Carousel developed a...