Adobe Systems Inc. announced early this week that it would take over Magento Commerce from the hands of a private equity firm Permira for $1.68 billion (approx. Rs.11,400 crore). Adobe, the main software-business statement behind Photo editing software Photoshop and PDF Reader, claimed that this deal would be of great help to boost its Experience cloud business, providing marketing, advertisements and analytics services.
Magento was founded in 2008 and was first taken over by eBay in 2011 and then bought by Permira in 2015 alongside its other clients including Canon, Rosetta Stone, Paul Smith. This deal can be seen as a way for future collaboration of Microsoft and Adobe against Salesforce.
“Adobe Systems Inc. is the only company with leadership in content creation, marketing, analytics and advertisements and e-commerce enabling real-time experiences across entire customer journey”, said Brad Rencher, an executive Vice President and General Manager at Adobe.
Magento CEO Mark Lavelle will continue to head Magento as part of Adobe’s Digital Experience business and was reported as saying,” Adobe and Magento share a common vision that brings about the collaboration of Adobe’s strength in content and data with Magento’s open commerce innovation. We’re excited to join Adobe and take this as an excellent opportunity for our customers, partners and developer community.”
Phil Guinard, one of the partners at Permira said,” Magento has increased its customer base and Cloud business due to key investments in marketing, client success, technology, sales management and others.”
The Magento Platform is built for unification of order management, predictive intelligence as well as digital commerce thereby allowing shopping experiences across a wide range of industries. Commerce is also a very integral part of customer satisfaction and experience nowadays. This Platform has a very strong base supported by an energetic community of more than 300,000- developers.
Not only this, Adobe Systems Inc. also has shared customers like Coca Cola, Warner Music Group, Nestle, and Cathay Pacific with Magento Commerce. This deal is expected to be finalised during Adobe’s fiscal third quarter. Fried, frank, Harris, Shriver and Jacobson served as the legal adviser to Permira and Qatalyst Partners served as financial advisers.
The addition of Magento Commerce Cloud with the Adobe Experience provides the customers with a single platform that can connect with the variety of customers globally and is considered as a very appropriate business collaboration.