On Tuesday 22 May, an announcement was made – Magento eCommerce has been set out to be purchased by Adobe Systems Inc. for $1.68 Billion.
Most popularly known for Adobe Photoshop, it appears that Adobe seeks to capture a larger slice of the gigantic eCommerce industry.
Magento is a platform that allows eCommerce stores to be built, handling online orders and more.
Its competitor Shopify – another platform known for its dropshipping and bootstrapped eCommerce stores – had share prices drop by approximately 5% after news of the acquisition.
Adobe plans to integrate the Magento platform into its own software and diversify its portfolio of digital products.
“Embedding commerce into the Adobe Experience Cloud with Magento enables Adobe to make every moment personal and every experience shoppable.”
– Brad Rencher, Adobe Executive Vice President
In 2009, Adobe also purchased Omniture (the deal with slightly larger than the Magento purchase) which helped them get into the digital advertising industry.
The Magento deal is expected to close in the 3rd quarter of the fiscal year for Adobe (once regulatory approval passes).