Adobe Systems today announced to have successfully acquired global leading eCommerce development platform Magento for a reported $1.68 billion. This is so far, one of the biggest acquisitions made in the history of online shopping industry, following two high-profile acquisitions over the past two years.

With this acquisition, Adobe Systems gets the missing piece of element that should fit in our Experience Cloud to enhance B2B and B2C shopping experiences. “Adobe is looking ahead to challenge the Salesforce by adding eCommerce capabilities into its products available for the global users,” says the company representative.

Brad Rencher, General Manager of Digital Experience and Executive Vice President at Adobe Systems, says “We saw an opportunity to add the next-generation commerce capabilities to our Experience Cloud as we looked at the current company portfolio. With this acquisition, we now have an offering that allows to close the loop with consumers. Now they can finalize a digital transaction online with the already tools the Adobe already offered.”

Adobe’s Third-Biggest Acquisition

The acquisition stands on the top of the biggest in a decade. With this acquisition, the joint consumers now get benefitted from the advantage of Magento’s integration into Adobe Experience Cloud. This allows the customers to run and handle their web stores more effectively and process product purchases, shipping and orders easily. The joint customers of Magento and Adobe Systems will see these new benefits soon. The joint customers include Coca-Cola, Nestle, Warner Music Group, etc.

According to the experts, this acquisition will help Adobe Systems to build its own robust ecosystem and compete harder with others like Oracle, Salesforce, and SAP.

Magento

Magento was found in 2018 and has been one of the fastest growing eCommerce development platform. The company was acquired by eBay in 2011 but then went private. In 2015 again a $200 million were injected from private equity company Permira Funds. While Adobe Systems has acquired Magento, but it is to be headed by the Magento CEO Mark Lavelle who will lead the Magento team as part of Adobe’s Digital Experience business.

This Fills the Gap

Despite having partnerships with several ecommerce platforms, Adobe has had a gap in the digital commerce. Previously, Adobe customers had to add an eCommerce aspect to their companies by integrating with connecting APIs, which is going to be solved with this acquisition. Now, Adobe aims to offer a native commerce platform as part of its suite to fill the gap.

With this acquisition, Magento has received a great increase in its value i.e. from $180 million in 2011 to $1.68 billion. That’s a hefty increase in its value and investors will see a nice return on its investment in just one year, too.