Cloud-based software maker Salesforce.com Inc said it would buy Demandware Inc, whose software is used by businesses to run e-commerce websites, for about $2.8 billion.

The deal will help Salesforce open a new front as it looks to take away more market share from traditional software providers such as Oracle Corp and SAP AG, both of which already offer cloud-based e-commerce services. The e-commerce market has been growing at a blistering pace as retailers expand their online presence, boosting demand for software that helps manage functions such as payment processing.

Salesforce’s cash offer of $75.00 per share represents a 56.3 per cent premium to Demandware’s Tuesday closing.

The lofty premium indicates that there were most likely multiple bidders at the table for Demandware. – (Reuters)