Salesforce has added another tool to their CRM applications with its upcoming acquisition of CloudCraze, a Chicago-based eCommerce platform.
The news was announced on Monday by CloudCraze. While the terms of the deal with Salesforce was not disclosed, it was revealed that the two companies had already signed an agreement.
We’re excited to announce that @CloudCraze has signed a definitive agreement to be acquired by @Salesforce! Learn more: https://t.co/TGu2iwTue7 pic.twitter.com/61snVoMCHV
— CloudCraze (@cloudcraze) March 12, 2018
CloudCraze president Ray Grady pointed out in the company’s announcement that the B2B industry is slated to grow to $1.2 trillion and that it’s crucial for businesses to grab this opportunity. He also added that “the addition of CloudCraze to the Salesforce Commerce Cloud, Salesforce and its customers can now take advantage of this shift to digital commerce, enabling business buyers to browse and purchase online as easily as consumers shop today.”
The deal between the two companies is not surprising considering how intertwined CloudCraze and Salesforce are. Salesforce built its B2B software on CloudCraze’s platform and its investment division also supported CloudCraze’s $20 million round in 2017. Insight Venture Partners also backed the Chicago startup during its latest funding run.
Last year’s investor round gave CloudCraze the needed capital to scale its business and expand its team. The company’s software helps businesses produce online revenue and remain connected to their customers effortlessly. Companies that use the platform can instantly see all the relevant customer data and quickly share it across various channels. Companies like Coca-Cola, GE, Kellogg’s, and L’Oreal are all using CloudCraze.
This is far from the first startup that Salesforce bought. About two years ago, the company purchased Demandware. It also absorbed Chicago startups Gravitytank AKTA, InStranet, and Model Metrics. The company also acquired SteelBrick in 2015 for $300 million.
CloudCraze will be Salesforce’s second acquisition for the year, after taking a break from buying startups in 2017. The company acquired Attic Labs in January. It’s still unknown if Salesforce will be going on a buying spree again this year, although the company has been very open about its new revenue goals. Acquiring fast-growing startups is one sure way to hit their mark.
[Featured image via Salesforce APAC YouTube]