ADOBE HAS struck a deal to take Magento Commerce off of private equity firm Permira’s hands for $1.68bn – just three years after Permira bought up the company for just $200m.
Adobe intends to integrate the Magento Commerce Cloud with the Adobe Experience Cloud “delivering a single platform that serves both B2B and B2C customers globally”. The acquisition is the third biggest in Adobe’s history.
According to Adobe, 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”.
And who doesn’t like “shopping experiences”?
Magento’s ecommerce cloud platform is used by a number of big-name companies, including Coca-Cola, Warner Brothers Music, Canon and Nestle, although the company only had revenues of about $150m last year, according to US trade journal Adweek.
Permira had acquired from eBay back in 2015 while, before that, eBay had picked it up for around $180m in 2011. This time round, though, it sounds like Adobe is keen to hold on to Magento for the long term.
The aim of the acquisition is to better enable Adobe to compete against Oracle and Salesforce, which both have relatively mature commerce platforms – Salesforce acquired Demandware in 2016 for $2.8 billion to provide it with a similar range of capabilities that Magento will bring to Adobe.
Adobe’s statement continues: “The Magento Platform is built on proven, scalable technology supported by a vibrant community of more than 300,000 developers.
“The Magento partner ecosystem provides thousands of pre-built extensions, including payment, shipping, tax and logistics. This level of flexibility fives businesses the ability to quickly ramp and iterate their commerce capabilities for their unique business needs.”
Brad Rencher, general manager of Adobe Digital Experience, under whom the Magento acquisition will be managed, described the combination as providing Adobe with “leadership in content creation, marketing, advertising, analytics and, now, commerce”. This he added, would enable “real-time experiences across the entire customer journey”.
He continued: “Embedding commerce into the Adobe Experience Cloud with Magento enables Adobe to make every moment personal and every experience shoppable.”
Magento CEO Mark Lavelle, meanwhile, will continue to head-up Magento as part of the Adobe Digital Experience, reporting to Rencher. µ
Source : Inquirer