Adobe is about to Acquire Magento for $1.68B

Adobe is about to Acquire Magento

Adobe is about to close a deal to buy Magento for $1.68 billion, Bloomberg reports. The acquisition, which is Adobe’s third largest, allows the company to take a larger stake in the digital commerce industry, where Salesforce and Oracle have stood out as the dominant players.

Adobe plans to create a new system to support online entrepreneurship, the company said in a statement. Magento creates software to run e-commerce sites and also helps sellers market products using social media advertising. The company spun off from Ebay in 2015 when it was purchased by a private equity firm, Permira Holdings, for about $200 million. Permira stands to make more than five times its initial investment after the acquisition goes through, should Adobe receive regulatory approval, Bloomberg reports.

This might disrupt the community markets, where majority of the customers adapted to Magento open framework. Hope Adobe continuous the support for community.  The problem for smaller commerce sellers who Magento supports is that they can have the most functional e-commerce storefronts, but without adequate demand traffic, there is under-monetization and all sorts of misalignment versus original business plan and commitments to Adobe, etc. come under scrutiny.

This was expected after Salesforce acquired Demandware, Adobe needed a deeper solution in eCommerce. Magento is a great product for SMBs.