Adobe Systems Incorporated (Nasdaq: ADBE) announced on Monday that it is taking over Magento Commerce, a market leader in e-commerce platform for $1.68 billion. The entire all-cash transaction will get over during the third quarter of Adobe’s 2018 fiscal. Mark Lavelle, CEO of Magento will then continue leading Magento team integrated with Adobe Experience Cloud business.
Adding to this, the chief executive also stated that Adobe would buy back shares up to $8 billion by its fiscal year 2021. Adobe shares soared about one percent post the announcement.
The California-based software company, Adobe is a leading provider of a string of services related to content and data, such as analytics, advertising and marketing. Its diverse product line includes Adobe Creative Cloud, Adobe Document Cloud and Adobe Experience Cloud.
Emphasizing on Adobe Experience Cloud business, it individually handles 233 trillion customer transactions per year. With a pretty impressive customer base that includes more than two-thirds of Fortune 500, ten of the largest corporations and financial services in the US and the top nine largest media companies in the world, Adobe cloud business is just thriving.
Fortifying on the cloud business, the company realized that commerce has become an essential part of customer experience. The consumers, as well as businesses, demand to create every transaction shoppable – whether it is on the web, mobile, social, in-product or in-store.
In view of the new set of customer expectations, the Adobe-Magento integration is a major step taken to enrich the Adobe Experience Cloud business. “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,” said Brad Rencher, Executive Vice President and General Manager, Adobe Experience Cloud.
Adobe Experience Cloud business obtains an array of benefits through this acquisition. Firstly, Magento Commerce brings a wide and deep knowledge of digital commerce, order management and predictive intelligence.
Secondly, it is a common e-commerce platform for enabling seamless shopping experiences across diverse businesses including Canon, Helly Hansen, Paul Smith and Rosetta Stone. Adobe and Magento even possess mutual customers including Coca-Cola, Warner Music Group, Nestlé and Cathay Pacific.
“Embedding commerce into the Adobe Experience Cloud with Magento enables Adobe to make every moment personal and every experience shoppable,” Brad added.
Magento Commerce, founded in 2008, is backed by the Permira fund since 2015. It is a leading supplier of digital commerce innovation to corporate and brands across over thirty B2C and B2B industries.
“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,” said Mark Lavelle, CEO, Magento.
In the digital commerce business, Magento Commerce is positioned as the number one provider to the Internet Retailer Top 1000, the B2B 300 and the Top 500 Guides for Europe and Latin America. The cloud innovation company is supported by a vast ecosystem comprising of over 1,150 technology partners and a global community of more than 300,000 developers. Moreover, it is the biggest eCommerce platform for extensions available for download on the Magento Marketplace.
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