Adobe, the industry’s leading web application software company, has made another acquisition this week. The company announced that it has acquired e-commerce startup Magento for a whopping $1.68 billion.
According to TechCrunch, the deal will give Adobe the tool that works in B2B and B2C contexts. More importantly, the deal will beef up the company’s current portfolio. The deal will also help Adobe compete with Salesforce, which offers its own marketing, sales, and service offerings in the cloud. Salesforce has acquired Demandware for more than $2 billion, which sources say provide a similar set of functionality.
Magento will likely integrate with Adobe Experience Cloud, the company’s Enterprise CMS platform. The deal is expected to complete between June and August of this year.
Founded in 2008 and based in Silicon Valley, California, Magento is a leading platform for open commerce innovation. It works with some of the world’s leading retailers, brands, and online businesses. The company has been acquired by eBay in 2011 for just $180 million. But in 2015, Magento went private again with some help from Permira Funds, which reports say paid around $200 million for the e-commerce platform.
The company provides two platforms, the Magento Open Source, and Magento Commerce. In 2016, Magento introduced its platform as a service, Magento Commerce. But unlike Magento Open Source, the Magento Commerce is not free and comes with a decent charge. Magento Commerce has been designed for large businesses that require some technical support.
The company has raised around $272 million in total funding. Its investors include Hillhouse Capital Group and e-commerce giant eBay.
Magento also made some acquisitions in the past years. These include the Israeli-based e-commerce platform Shopial (April 2017) and RJMetrics (April 2016), a Philadelphia-based analytics platform for online businesses.
Founded in 1982 and based in San Jose, California, Adobe is a leading web application software company with a strong focus on multimedia, creativity software, and rich internet application. The company is best known for its image-editing software Photoshop, Adobe Reader, and Adobe Creative Cloud.