Adobe to Acquire Magento Commerce
Adobe announced today that it was acquiring Magento for $1.68 billion deal. The purchase gives Adobe a missing e-commerce platform piece that works in both B2C and B2B and should fit nicely in the company’s Experience Cloud. It should also help Adobe compete with Salesforce, which offers its own marketing, sales and service offerings in the cloud.
In a statement about the acquisition, Brad Rencher, Executive Vice President and General Manager, Digital Experience, Adobe, said, “Adobe is the only company with leadership in content creation, marketing, advertising, analytics, and now commerce – enabling real-time experiences across the entire customer journey…Embedding commerce into the Adobe Experience Cloud with Magento enables Adobe to make every moment personal and every experience shoppable.”
The acquisition is expected to close in the Adobe fiscal third quarter, subject to regulatory approvals and other customary closing conditions. Magento CEO Mark Lavelle will continue to lead the Magento Commerce as part of Adobe’s Digital Experience business, reporting to Brad Rencher. In the statement about the acquisition, Mark said, “Adobe and Magento share a vision for the future of digital experiences that brings together Adobe’s strength in content and data with Magento’s open commerce innovation… We’re excited to join Adobe and believe this will be a great opportunity for our customers, partners and developer community.”
Magento was founded in 2008 by Roy Rubin and Yoav Kutner, and calls itself “the leading platform for open commerce innovation”. This isn’t the first time the company has been acquired. The company was acquired by eBay in 2011 in a deal for an estimated $180 million. Then the company went private again in 2015 with the help of private equity company Permira Funds, which sources say paid around $200 million.
