The new buzz in the ecommerce industry is the Adobe’s acquisition of ecommerce platform provider Magento. Magento is an open source platform with its presence worldwide. The revenue of the Magento in the year 2017 was around $150 Million and Adobe agreed to acquire Magento for $1.68 billion. Adobe is the leader in designing and have a world-class experience in delivering the digital services with the best ever tools like Adobe Experience Manager, Adobe Analytics and Adobe Campaign. There were rumors in the industry that Adobe is looking forward to making an entry in the commerce solution and the decision of acquiring Magento is quite surprising for the ecommerce world.
The transaction is expected to close during the third quarter of Adobe’s 2018 fiscal year. Until the transaction closes, each company will continue to operate independently. As per the press release by Adobe –
“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, Digital Experience, Adobe. “Embedding commerce into the Adobe Experience Cloud with Magento enables Adobe to make every moment personal and every experience shoppable.”
“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. “We’re excited to join Adobe and believe this will be a great opportunity for our customers, partners and developer community.”
Adobe stated they envision Magento as a good fit to their portfolio for the mid- and enterprise markets and again highlighted that both Adobe and Magento share some customers such as Coca-Cola, Warner Music Group, Nestlé and Cathay Pacific.
The company revealed that Magento’s 2017 revenues were in the neighborhood of $150 million and that Magento currently employs about 750 people.
Executives from Adobe kept highlighting the cloud business Magento developed over the last couple of years and that the platform’s development has been Cloud-First.
They also hinted that Adobe will be concentrating on extending capabilities of the cloud platforms between the two companies.
Another area they highlighted to investors was the 300,000 plus strong developer network Magento brings to Adobe.
It’s a bit unclear how Adobe counted these developers and in a fact sheet released about the acquisition, it also mentions 1,150+ Magento partners.
Most likely, they did an estimated “headcount” of developers that work at Magento partners who are involved in active development on products and services that integrate with the Magento platform.
As posted on the Magento blog “As Content + Commerce capabilities have become inextricably linked, commerce plays a more integral part of the consumer experience than ever before.
With Magento’s position as the world’s most popular commerce platform and Adobe’s leadership in designing and delivering great digital experiences, we will enable every business to create and deliver compelling real-time experiences, engage with customers across every touchpoint, and transact anywhere across the entire customer journey for both B2C and B2B.
We stand at the forefront of a tremendous opportunity:
- To offer even greater value to customers, partners and developers across their commerce investment
- To accelerate our product roadmap enabled by the breadth and depth of Adobe’s product capabilities and cloud technology
- To tap Adobe’s global operational scale to accelerate our penetration into new verticals and geographies
- To harness the creative passion of our Community towards our mission of using technology to connect and empower people”