Why Adobe Acquired Magento

On May 21, Adobe (ADBE) announced its acquisition of Magento Commerce for $1.7 billion.

Anne Shields - Author

Jun. 18 2018, Updated 9:02 a.m. ET


Adobe targets e-commerce space with Magento

Earlier in the series, we discussed the acquisitions of Coresystems and DataScience.com by SAP (SAP) and Oracle (ORCL), respectively. On May 21, Adobe (ADBE) announced its acquisition of Magento Commerce for $1.7 billion.

Discussing how this acquisition would boost Adobe’s offerings and its presence in the commerce space, Brad Rencher, executive vice president of digital experience at Adobe, said, “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. Embedding commerce into the Adobe Experience Cloud with Magento enables Adobe to make every moment personal and every experience shoppable.”

Following the completion of the acquisition, Magento will become a part of Adobe’s digital experience business, complementing its customer experience tools, which include marketing, advertising, content creation, and analytics.

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Magento’s profile and commerce platform

Magento provides an open-source web platform for content management and e-commerce that significantly eases matters for small businesses and lures big group users too.

Magento will enrich Adobe’s digital experience, as it will add its open commerce innovation digital experience to Adobe’s edge in data and content, which will be beneficial to customers, partners, and the developer community.

Annually, Magento handles over $155 billion in gross merchandise volume. Gross merchandise volume is the most common and important performance metric for e-commerce players, as it refers to total sales volumes according to the dollar value of merchandise sold through a marketplace in a given period.

Helly Hansen, Canon, Paul Smith, and Rosetta Stone feature among Magento’s customers. The Coca-Cola Company, Warner Music Group, and Nestlé are the companies that both Adobe and Magento share. The sharing of customers offers Adobe a better cross-selling opportunity for its offerings.


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