Dive Brief:
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Burlington, MA-based e-commerce software company Demandware Inc. said Monday it will acquire Salt Lake City-based Tomax, an e-commerce software company that provides POS and store operation solutions, for $75 million.
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Demandware will pay $60 million in cash and $15 million in contingent retention-based payments to be paid over time, the company said, in a deal expected to close at the end of the month.
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The acquisition is Demandware's third in the past year, after buying retail messaging company CQuotient in October and order management company Mainstreet Commerce last January.
Dive Insight:
With most retail commerce still occurring in stores even amidst a big digital push driven in large part by mobile growth, Demandware looks to be getting its ducks in a row. Officials from Demandware noted that Tomax’s flagship product, Retail.net, will enable the combined company to provide a cloud-based platform that provides retailers with consumer, product, inventory, order, and price data.
"We have demonstrated that our cloud solution is a superior model for managing consumer engagement across channels,” Demandware CEO Tom Ebling said in a statement. “The addition of Tomax’s POS technology and deep in-store domain expertise allows us to accelerate our One Platform strategy by extending our reach further into the physical store. This transaction creates a tremendous opportunity for Demandware, by expanding our market to include in-store retail sales.”