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DIGITAL FEED

Adobe Buys Magento

5/23/2018

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Source: TechCrunch
Adobe will buy e-commerce services provider Magento for $1.68 billion, a purchase intended to supplement its current Experience Cloud. The purchase will help Adobe's Experience Cloud  business compete with Salesforce, SAP and Oracle as it adds e-commerce to its current advertising, marketing and analytics services. Magento competes directly with Shopify Inc and lets users build websites with e-commerce along with other services such as social media advertising. Magento is the choice for many large companies such as Canon Inc and Coca-Cola and the e-commerce provider supports over $155 billion in gross merchandise volume. The purchase allows Adobe to completely cover the customer journey loop from marketing to sale. 

Magento, founded in 2008, was purchased by eBay in deal reported to be around $180million in 2011. The company went on to become private again with the support of Permira Funds in 2015 for a reported $200 million. Adobe's purchase of Magento for $1.68 billion is the company's largest acquisition in nearly a decade. Adobe's last big ticket acquisition was in 2009, when Adobe acquired digital advertising player Omniture. The Magento acquisition is subject to regulatory approval, and is expected to close during Adobe's third quarter. 

Shopify Inc, Magento competitor, dropped by as much as 5.5 % following the announcement. 

Click here to read the full article. ​
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