Acquisition of Utah-based company brings Demandware’s Envisioned Bridge between e-commerce and brick-and-mortar stores closer

<p style=”line-height: 1.15; margin-top: 0pt; margin-bottom: 11pt;” dir=”ltr”><span style=”font-size: 12px; font-family: Verdana; color: #000000; vertical-align: baseline; white-space: pre-wrap;”>E-commerce platform Demandware announced January 12 that it</span> <a style=”text-decoration: none;” href=”http://techcrunch.com/2015/01/12/demandware-snags-point-of-sale-provider-tomax-to-extend-reach-from-web-to-store/”><span style=”font-size: 12px; font-family: Verdana; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;”>purchased Utah-based, point-of-sale company Tomax,</span></a> <span style=”font-size: 12px; font-family: Verdana; color: #000000; vertical-align: baseline; white-space: pre-wrap;”>which will allow the company to extend its reach from the e-commerce sector to brick-and-mortar storefronts.</span></p><p style=”line-height: 1.15; margin-top: 0pt; margin-bottom: 11pt;” dir=”ltr”><span style=”font-size: 12px; font-family: Verdana; color: #000000; vertical-align: baseline; white-space: pre-wrap;”>According to Demandware CEO Tom Ebling, the company was attracted to Tomax for a number of different reasons.</span></p><p style=”line-height: 1.15; margin-top: 0pt; margin-bottom: 11pt;” dir=”ltr”><span style=”font-size: 12px; font-family: Verdana; color: #000000; vertical-align: baseline; white-space: pre-wrap;”>Firstly, Tomax is cloud-based, which means its data and resources are spread out over a number of different servers. Such a network has several proven benefits. In fact,</span> <a style=”text-decoration: none;” href=”https://www.sectorlink.com/blog.php”><span style=”font-size: 12px; font-family: Verdana; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;”>52% of companies say that cloud computing has enabled them to create new products and services faster.</span></a> <span style=”font-size: 12px; font-family: Verdana; color: #000000; vertical-align: baseline; white-space: pre-wrap;”>More specifically, Demandware is interested in the scalability that the cloud affords. Tomax is built to scale to enterprise demand, making it capable of processing thousands of transactions per hour.</span></p><p style=”line-height: 1.15; margin-top: 0pt; margin-bottom: 11pt;” dir=”ltr”><span style=”font-size: 12px; font-family: Verdana; color: #000000; vertical-align: baseline; white-space: pre-wrap;”>Secondly, Demandware has a vision of a round-trip solution for retailers –</span> <a style=”text-decoration: none;” href=”https://www.internetretailer.com/2015/01/12/e-commerce-software-provider-demandware-acquires-specialist”><span style=”font-size: 12px; font-family: Verdana; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;”>websites extend to brick-and-mortar stores, and vice versa.</span></a> <span style=”font-size: 12px; font-family: Verdana; color: #000000; vertical-align: baseline; white-space: pre-wrap;”>The company imagines a more integrated shopping experience. For example, consumer can order custom apparel, and then go pick it up in store. Acquiring the point-of-sale company allows Demandware to provide retailers with access to comprehensive data on consumers, products, inventory, orders, and prices. This gives retailers a basis for continuous, in store innovation. In other words, it extends Demandware’s reach all the way to the physical store, as they envision.</span></p><p style=”line-height: 1.15; margin-top: 0pt; margin-bottom: 11pt;” dir=”ltr”><span style=”font-size: 12px; font-family: Verdana; color: #000000; vertical-align: baseline; white-space: pre-wrap;”>”The retail landscape is rapidly changing with more than 70% of specialty stores saying their next POS will be a unified commerce platform,” said Greg Buzek, president and founder of research consulting firm IHL Group, in a statement. “Traditional siloed systems are not meeting the needs of the consumer who requires the same experience across channels and devices. Retailers need to have a ‘single version of the truth’—one view of the enterprise organization and information about the consumer from point of sale to digital commerce.”</span></p><p style=”line-height: 1.15; margin-top: 0pt; margin-bottom: 11pt;” dir=”ltr”><span style=”font-size: 12px; font-family: Verdana; color: #000000; vertical-align: baseline; white-space: pre-wrap;”>Demandware will pay</span> <a style=”text-decoration: none;” href=”http://www.bizjournals.com/boston/blog/techflash/2015/01/demandware-to-buy-utah-software-company-for-75m.html”><span style=”font-size: 12px; font-family: Verdana; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;”>$60 million in cash, and $15 million in benefits.</span></a> <span style=”font-size: 12px; font-family: Verdana; color: #000000; vertical-align: baseline; white-space: pre-wrap;”>The acquisition is expected to close at the end of January. All 170 of the Utah-based company’s employees and its offices in Salt Lake City will remain open.</span></p>

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