Alpha Gen Capital
Wed, Jun. 1, 7:45 AM
- Demandware (NYSE:DWRE) +55.9% premarket after Salesforce.com (NYSE:CRM) agrees to acquire the provider of software to design e-commerce websites, in a deal worth ~$2.8B; CRM -2% premarket.
- CRM's cash offer of $75/share represents a 56.3% premium to DWRE's closing price yesterday.
- CRM expects the deal to raise its FY 2017 revenue by $100M-$120M while reducing adjusted EPS by $0.07; CRM also expects FQ2 adjusted EPS of $0.21-$0.22 and revenue of $2.01B-$2.03B.
- DWRE's clients include Lands' End, L'Oreal and Marks and Spencer Group.
Oct. 14, 2014, 12:01 PM
- Demandware (DWRE +1.8%) has acquired CQuotient, a provider of technology that analyzes the behavior of online shoppers, along with user data, to personalize their shopping experiences across online and offline channels. Terms are undisclosed.
- CQuotient clients include Staples and Then Mens Wearhouse. Demandware proclaims the startup's team features "world-class engineers and data scientists," and praises its predictive science-based approach to personalization.
- Demandware is hoping the purchase will help better differentiate its e-commerce software platform, which faces stiff competition from IBM, Oracle, NetSuite, and SAP-owned hybris. Shares sold off hard in August after Demandware reported light Q2 customer signings, in spite of beating revenue and EPS estimates.
Sep. 19, 2014, 11:23 AM
- SAP (SAP -3.9%) investors have a case of sticker shock after the company agreed to pay $8.3B (to be financed through a credit facility) to buy cloud travel/expense management software leader Concur Technologies. The acquisition price is equal to 9.6x Concur's estimated FY15 (ends Sep. '15) sales.
- On the other hand, enterprise cloud software names are rallying on hopes of fresh deal activity. CRM +1.5%. N +2.7%. NOW +2.6%. PAYC +5%. ULTI +2.2%. JIVE +1.8%. DWRE +1.8%. MKTO +1.7%.
- SAP CEO Bill McDermott proclaims combining Concur's products with Ariba's cloud procurement/B2B marketplace offerings and Fieldglass' cloud labor-management software will help his company redefine "how businesses conduct commerce across goods and services, contingent workforces, travel and entertainment."
- McDermott also praises Concur's corporate travel ecosystem, which includes Hertz, Delta, Expedia, Sabre, and many others, and sees an opportunity to create real-time travel collaboration tools running on SAP's Hana in-memory database. SAP notes only 30% of Concur customers are currently SAP clients, yielding plenty of cross-selling opportunities.
Jul. 17, 2014, 11:28 AM
- U.K.-based Venda offers a cloud-based platform for handling online, mobile, and social e-commerce interactions, as well as managing in-store marketing and order fulfillment/logistics. Its customers include British retailers such as Tesco F&F Clothing, Boohoo.com, and Laura Ashley.
- NetSuite (N -1.3%), which already offers a multi-channel e-commerce software platform (SuiteCommerce, has seen strong growth over the last 2 years), says the purchase will improve SuiteCommerce's feature set and help the company expand in Europe. Deal terms are undisclosed for now.
- CEO Zach Nelson: "By combining Venda's deep customer insight and years of experience delivering a real-time, scalable commerce platform with NetSuite's cloud leadership, we can bring new capabilities to B2B and B2C companies of all sizes and transform how they run their businesses."
- The purchase heightens NetSuite's competitive challenge to Demandware (DWRE -1.5%), which receives a large chunk of its sales from European online merchants. SAP (via its hybris unit), IBM, and Oracle are also looking to provide multi-channel commerce platforms, and thus take advantage of the growing IT spending power of CMOs.
- More details will be given following NetSuite's July 24 Q2 report.
May 20, 2014, 11:30 AM
- Acquisition-hungry SAP's (SAP -0.3%) latest buyout target is SeeWhy, a top provider of behavior-analysis online marketing software. Terms are undisclosed.
- SeeWhy's products monitor/analyze the activity of online/mobile shoppers, and use their findings to deliver personalized e-mail follow-ups and targeted ads. Its offerings complement those of SAP's hybris unit, a leading provider of e-commerce infrastructure software (acquired last year, possibly for $1B+).
- Demandware (DWRE -1.5%), which competes against SAP/hybris, has a partnership with SeeWhy that could be affected by the deal.
- SAP's move comes two months after the company struck a partnership with Adobe's Marketing Cloud online ad tech unit, and announced it's buying cloud labor-management software vendor Fieldglass.
Jan. 23, 2014, 9:20 AM
- Demandware (DWRE) acquires cloud-based order management solutions provider Mainstreet Commerce. Terms were undisclosed.
- Demandware and Mainstreet already share ~20 customers, and Mainstreet's BusinessFlow product will bolster online and in-store order processes, inventory management, and fulfill anywhere capabilities.
- The transaction is not expected to materially impact 2014 results.
Jun. 5, 2013, 10:05 AMSAP expands its cloud software arsenal by acquiring hybris, a top provider of e-commerce infrastructure software, for an undisclosed sum. The deal comes 8 months after SAP bought top B2B marketplace provider Ariba. SAP argues hybris' software, which covers Web, mobile, and in-store channels, will improve "customer insight and engagement" when paired with its Hana in-memory database and Jam social networking software. The deal could spell tougher competition for hybris rivals Demandware (DWRE -0.5%) and NetSuite (N -0.4%). SAP could also end up competing with IBM, which has been making acquisitions to bolster its Smarter Commerce initiative. | Jun. 5, 2013, 10:05 AM | 1 Comment
May 8, 2013, 11:52 AM
NetSuite (N +0.1%) has bought OrderMotion, a developer of cloud-based order management software for e-commerce sites. OrderMotion's products will complement NetSuite's existing order management offerings, which cover a number of different sales channels. Interestingly, OrderMotion's products work with front-end tools from Demandware (DWRE -0.4%), a major e-commerce software rival of NetSuite's. In January, NetSuite bought retail point-of-sale software firm Retail Anywhere.| May 8, 2013, 11:52 AM