Adobe says it will be acquiring Magento in a landmark e-commerce deal. Adobe specialises in digital media and marketing programs for many different business as well as consumers. For $1.68 billion, becoming the new owners of Magento will give Adobe the ability to offer a many new e-commerce and marketing services.
According to digitalcommerce360, Adobe’s CEO Shantanu Narayen had this to say about the acquisition:
“The addition of the Magento Commerce Cloud will enable commerce to be seamlessly integrated into Adobe Experience Cloud, delivering a single platform that serves both B2B and B2C customers globally,” Narayen told analysts on a conference call announcing the deal. “The Magento Platform brings together digital commerce, order management and predictive intelligence into a unified commerce platform enabling shopping experiences across a wide array of industries.”
The Magento Platform is supported by over 300,000 developers and offers services such as pre-built extensions, which include those for payment, shipping, tax and logistics.
Adobe went on to say that Magento customers include Canon, Helly Hansen, Paul Smith and Rosetta Stone. Adobe and Magento share joint customers including Coca-Cola, Warner Music Group, Nestlé and Cathay Pacific.
Brad Rencher, executive vice president and general manager of Adobe's digital experience business, had this to say:
“As we looked at our current portfolio of Adobe analytics, advertising and marketing cloud offerings, we saw an opportunity to add a next-generation commerce capability to Adobe Experience Cloud. One that could serve both B2B and B2C customers, across physical and digital goods, and provide the flexibility to scale to serve mid-market and large enterprise customers.”
How Will Magento Be Managed?
Even after a deal is finalised, Magento's CEO Mark Lavelle will continue to be in charge of Magento as part of Adobe’s digital experience business. He’ll report directly to Rencher.
Until the deal is closed, the two companies will be operating independently.
A Sound Opportunity For Adobe
“We believe the addition of Magento expands our available market opportunity, builds out our product portfolio, addresses a key underserved customer need, and brings a great team of people to Adobe. We intend to fund the acquisition price of $1.68 billion through our current cash position. Magento is private and while their financials are not regularly disclosed, they achieved revenue of approximately $150 million in calendar year 2017,” says Adobe's CFO John Murphy.