Adobe bolsters Experience Cloud with $1.68bn agreement to acquire Magento Commerce
Adobe has announced it is to purchase Magento Commerce Cloud in a deal valued at $1.68bn in a transaction that will amount to its second significant transaction of 2018 following the closure of its Sayspring acquisition.
Both Adobe and Magento share multiple clients including tier one brands such as Coca Cola and Nestlé / Adobe
Post the closure of the deal, Magento Commerce Cloud will be integrated into the Adobe Experience Cloud with the goal of delivering a single platform that serves both B2B and B2C brands.
The newly acquired platform will bring together digital commerce, order management plus predictive intelligence to help brands improve service levels and better compete in an era when the rise of e-commerce presents challenges to existing retail experience offerings.
The Magento Platform is supported by a community of more than 300,000 developers, endowing it with thousands of pre-built extensions, including payment, shipping, tax and logistics. Existing clients include Canon, Helly Hansen, Paul Smith, with both Adobe and Magento currently sharing clients such as Coca-Cola, Warner Music Group, Nestlé plus Cathay Pacific.
Upon close, Magento chief executive Mark Lavelle will continue to lead the Magento team as part of Adobe’s Digital Experience business and will report to Adobe’s executive vice president and general manager Brad Rencher.
The transaction is expected to close in the third quarter of 2018, pending regulatory approval, and builds upon the closure of the Experience Cloud provider’s purchase of voice search specialist Sayspring.
Adobe’s M&A activity to boost its cloud offering broadly reflects that of rival Oracle which has made similar efforts to bolster its marketing cloud with the purchase of contextual advertising outfit Grapeshot, closely followed by last week’s purchase of Datascience.com.