Public Company, Meet Startup: Demandware Snaps Up CQuotient
One of them is Demandware, a Burlington, MA-based maker of online shopping software for brands and retailers. The company had its IPO in 2012, and its stock price was up over $50 this morning, despite the downturn in the public markets; the firm’s market cap is around $1.8 billion.
Demandware (NYSE: DWRE) said on Tuesday it has acquired Boston-area startup CQuotient for an undisclosed price. The deal gives the larger company access to customer-level data science and analytics that it can apply to big brands and retailers to create “highly personalized shopping experiences,” says Demandware CEO Tom Ebling in a statement.
CQuotient got started in 2010 (see Q&A) and raised a $3 million funding round from Bain Capital Ventures. The company’s customers include Staples and Men’s Wearhouse.
CQuotient’s top executives, Rama Ramakrishnan and Graeme Grant, are joining Demandware in senior roles. Ramakrishnan and Grant originally met at ProfitLogic, a price-optimization software company that was bought by Oracle in 2005.
Demandware’s future depends on becoming the go-to tech provider for brands to sell their stuff across all digital platforms. The luxury market is especially important for the company, as Amazon and others own the commodity-level business online.