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Adobe acquires Magento

Adobe’s Acquisition of Magento & the Future of E-Commerce

Adobe finally acquired Magento Commerce on 30th May, 18 for a whopping amount of $1.68 Billion after its announcement a week ago. This purchase has given Adobe a missing e-commerce platform piece that is expected to fit nicely in the company’s Experience Cloud in the context of both B2B and B2C marketing.

Magento was originally released in 2008 by Varien Inc. under the foundership of Roy Rubin. Later it was acquired by eBay in 2011 for an estimated sum of $180 Million but after the break up of eBay itself on 18th July, 15 Magento went private once again with the help of $200 Million in funds by Permira private equity later that year.

Brad Rencher, Executive Vice President, Digital Experience, Adobe has already confirmed that after the acquisition, the Magento team will continue its work as part of Adobe’s Digital Experience business under the supervision of Mark Lavelle, Magento’s existing CEO.

Regarding the acquisition, Brad Rencher stated, “Adobe is the only company with leadership in content creation, marketing, advertising, analyzing 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.”

Adobe Systems Inc., since its establishment in 1982, has acquired 25 companies, divested 6 companies and purchased stakes in 5 companies so far, and with Magento this year, Adobe has made the biggest acquisition of the decade.

Between the two, Magento and Adobe shared many joined customers such as Coca-Cola, Nestle, Warner Music Group, Cathey Pacific etc. who are expected to benefit the most from Magento’s integration into Adobe’s Experience Cloud. Some of these benefits include the enhanced capability to handle online purchases, build and run online stores, shipping and returns along with using social media for product marketing.

In addition, Magento’s community which is already flourishing with thousands of pre-built plugins and extensions that cover everything from tax to logistics to payments to shipping etc. will give businesses, according to Adobe, the ability to iterate and quickly ramp up their commerce capabilities.

Moreover, the Magento’s Commerce Cloud, which includes predictive intelligence, order management and most importantly, digital commerce will enable Adobe to easily integrate e-commerce into its Experience Cloud in order to enhance both B2B and B2C shopping experience along with industries like consumer-packaged goods, wholesale, manufacturing, retail and the public sector as well.

End Thoughts:

With the coming together of Magento as the world’s most popular e-commerce platform and Adobe as a world leader in designing and delivering great digital experience, businesses will be given the golden opportunity to not only create and deliver compelling real-time experiences along with the freedom to transact anywhere across the customer journey for both B2B and B2C marketing but also the resources to engage with customers across every touchpoint.

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