May 21 was a day full of speculations and curiosities when Magento had a big announcement for its community – “Mark Lavelle, CEO of Magento announced that Magento will be acquired by Adobe in Q3 for $1.68B in cash.”
I’m excited to share that @Adobe has agreed to acquire @magento https://t.co/biv2J7aT2y
— Mark Lavelle (@mklave1) May 21, 2018
As soon as the news was out, we could see a lot of discussions started amongst the Magento Community. In this blog post, we’ll cover everything about this acquisition and its impact on Magento, partners, merchants, developers and open source community.
Adobe – A leader in 2018 Forrester Wave for Digital Asset Management
Adobe Systems Inc. is famously recognized for its creative suites such as Photoshop, Illustrator, and In Design. Adobe has formed strong company sales and has offered exceptional digital experiences to its customers with the help of these products. In the recent times, the company has taken several initiatives to diversify in various other verticals such as cloud-based commerce and eCommerce internet marketing.
Adobe leads the international markets in liberating designing and delivering digital experiences through content and data creation services. The vast experience of Adobe lies in its remarkable content and data that signifies an intuitive, consistent, and personalized experience of customers.
I just might be *ecstatic* about Adobe’s acquisition of @magento. It’s a company that has built an amazingly popular, open source, developer-driven slice of commerce heaven https://t.co/ssikwuEl0M
— Matt Asay (@mjasay) May 21, 2018
As a company we depend on open source; this is a great way for us to depend upon it even more visibly, says Matt Asay, Head of Developer Ecosystem, Adobe
Magento, World’s most popular eCommerce platform – A leader in The Forrester Wave Q3, 2017 B2B Commerce Suites for Midsize Organizations
Magento is a leading American-based company, founded in 2008 with the aim of providing solutions and contributing to some of the changing customer’s shopping patterns. Magento’s software is flexible and open-source that allows its clients to customize its features as per their requirements.
Magento Inc. involves developing and marketing of cloud-based commerce solutions. The company meets the demands of the merchants and brands across B2B and B2C industries. The company has further established an extensive portfolio of its products and delivery, solution partners, technology partners, and a wide range of services like business intelligence (BI), content management system (CMS), shipping and order management system (OMS) that has significantly resulted in critical investments.
The Royal Acquisition of the Leading Firms
Besides being the elder software business statesman in Photoshop and PDF reader; Adobe adds a pivotal piece to its platform by agreeing to purchase Magento commerce. The digital service provider is making its third biggest acquisition to create a complete system for designing digital advertisements, building eCommerce websites, and other online customer experiences and transactions.
Adobe has planned to gait forward from the digital media products that made it one of the largest software firms and diversify in eCommerce too. In the year 2009, the Photoshop software provider acquired Omniture which made Adobe a leader in digital advertising.
The current acquisition of Adobe with Magento would seek a neck-to-neck competition between the cloud-based commerce services from Salesforce, SAP SE, IBM, and Oracle. Adobe and Magento’s collaboration would prove to be evidence of collaboration taking place in the eCommerce marketplace.
The acquisition is yet to be closed in the third quarter of Adobe’s 2018 fiscal year. Both the companies are expected to work independently till the regulatory approval is pending.
The Impact of acquisition to its partners
Commerce is considered to be an integral part of the customer’s experience. Both, consumers and the businesses expect an interactive shopping experience – whether on mobile, web, social, or in-store.
It makes a perfect business and strategic sense that adding Magento to Adobe would create a significant platform for Adobe’s existing range of services. Both the companies have a list of joint customers including Warner music group, coca-cola, Nestle, and Cathay Pacific which will get enough benefits due to the addition of Magento to Adobe experience cloud. Combined with Adobe Experience Cloud, the Magento Commerce Cloud will bring digital commerce, order management and business intelligence to enable both B2B and B2C shopping experiences across the customer journey.
Mark Lavelle, CEO Magento states, “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. We’re excited to join Adobe and believe this will be a great opportunity for our customers, partners and developer community.” However, Lavelle will continue to lead the Magento team as a part of Adobe’s Digital Experience business.
Endnote
Adobe acquiring Magento from a private equity firm Permira is the latest and the most happening deal for digital commerce industry. As for now, Adobe seems content to raise its existing cloud-based experience with the additional expertise of Magento and consolidate its existing services before expanding further.
What do you think about this surprising yet meaningful acquisition? Do share your thoughts in the comment section below.
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Shivi Rao is a content marketer with Krish. She has worked in various industries spanning technology, science, rural marketing, startups & unicorns, eCommerce business, and digital marketing, believing that content is the foundation to facilitate the visibility of any organization and ensuring her words do the same. In her free time, you can either find her lifting weights in the gym or feeding the strays.
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