Adobe Inc. announced an agreement to acquire a popular e-commerce platform Magento Inc. for $1.68 Billion.
Adobe, as a very venerable software-as-a-service provider, is looking forward to adding e-commerce support in its existing cloud marketing services.
The deal is expected to close in the third quarter of this year (2018).
When it comes to building and managing large online e-commerce stores, Magento is the favourable choice.
Magento handles $155 billion in gross merchandise volume per year and counts Canon Inc., Rosetta Stone Inc., Helly Hansen Holdings AS, Nestle SA, Coca-Cola, Paul Smith Holdings Ltd, and Warner Music Group among its customers.
Adobe also tweeted about this acquisition,
— Adobe (@Adobe) May 21, 2018
…and so did Magento.
— Magento (@magento) May 21, 2018
The main purpose of Adobe purchasing Magento or behind this acquisition is they want to combine the Magento’s offerings with their own Adobe Experience Cloud. So they can provide the comprehensive suite of digital marketing services which includes advertising and analytics tools in it.
Brad Rencher, executive vice president of Digital Experience for Adobe, said in one of his statement,
“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.”
Adobe has had a gap of digital e-commerce solutions offering for a long time, which now can be fulfilled after this acquisition.
While it’s competitors – Salesforce Inc., IBM Corp., and Oracle Corp. already have e-commerce platforms. But now Adobe also has one and thy can compete equally with its competitors.
Magento presently comes in 2 variations,
1. An open source version which gives flexibility to developers to customize and build on.
2. Magento Paid commerce version which gives additional functionality to the developers like tools for staging, managed cloud hosting and loyalty program management.
Moreover, Magento platform has the vibrant community support that contributes plugins to expand its capabilities.
So, Adobe is gearing up to bring the new customers for its cloud services and they have already made it’s UI and UX design app – XD, available for free to fetch more professionals onto its platform.
Though there are questions whether they will keep Magento’s open source version alive for developers, which they will reveal the details later this year.