{"id":93,"date":"2018-05-23T03:05:39","date_gmt":"2018-05-23T03:05:39","guid":{"rendered":"http:\/\/relevantmachine.com\/?p=93"},"modified":"2018-05-23T12:28:07","modified_gmt":"2018-05-23T12:28:07","slug":"adobe-to-acquire-magento-for-1-68b","status":"publish","type":"post","link":"https:\/\/relevantmachine.com\/index.php\/2018\/05\/23\/adobe-to-acquire-magento-for-1-68b\/","title":{"rendered":"Adobe to acquire Magento for $1.68B"},"content":{"rendered":"
FROM TECH CRUNCH<\/div>\n

Adobe to acquire Magento for $1.68B<\/div>\n
https:\/\/techcrunch.com\/2018\/05\/21\/adobe-to-acquire-magento-for-1-6-b\/<\/a><\/b><\/span><\/div>\n
<\/div>\n
\n
\n

Adobe announced today that\u00a0it was acquiring Magento for $1.68 billion<\/a>. The purchase gives Adobe a missing e-commerce platform piece that works in B2B and B2C contexts and should fit nicely in the company\u2019s Experience Cloud.<\/p>\n

It should also help Adobe compete with Salesforce, which offers its own marketing, sales and service offerings in the cloud and which\u00a0bought Demandware for more than $2 billion<\/a>in 2016 to provide a similar set of functionality.<\/p>\n

Brent Leary, who owns\u00a0CRM Essentials<\/a>\u00a0and keeps a close eye on the intersection between marketing and CRM, says this fills an obvious hole in\u00a0Adobe\u2019s Experience Cloud<\/a>. \u201cNow they have an offering that allows them to close the loop with consumers, who are able to finalize a digital transaction that started online with digital marketing tools Adobe already offered,\u201d Leary explained.<\/p>\n

Leary also sees this deal bringing Microsoft and Adobe,\u00a0who have already announced partnerships<\/a>\u00a0in the past, closer together. \u201cBut maybe even more interesting may be how this may further the relationship Adobe has with Microsoft. As they also are missing an e-commerce piece to their customer engagement platform [as well],\u201d he pointed out. Leary speculates this could lead to an even deeper relationship between the two companies as they are each battling Salesforce.<\/p>\n

Salesforce is the 10,000-pound gorilla in this space with revenue across its various clouds reaching more than $8 billion last year. The company is\u00a0on a run rate to exceed $10 billion<\/a>\u00a0in 2018. It has set a long-term company goal\u00a0to reach $60 billion<\/a>in annual revenue by 2034.<\/p>\n

Leary says this isn\u2019t necessarily the perfect deal because up until now Magento has concentrated on SMB customers, whereas Adobe\u2019s target audience is clearly the enterprise. If you look at the other players in the space who have already taken the e-commerce platform plunge, Salesforce got Demandware and SAP got Hybris, which were geared more to the enterprise target demographic, but he believes it was simply a case of the best option available.<\/p>\n

But Cindy Zhou, VP and principal analyst at Constellation Research says Magento has some big-time customers too. \u201cMagento has become the commerce platform of choice for many big and mid-size companies including Coca Cola. There is great synergy for Adobe to complete the customer journey,\u201d she said. \u201cFrom my perspective, the marketing-to-sale insight potential is what\u2019s exciting,\u201d she added.<\/p>\n

This isn\u2019t the first time the company has been acquired. Magento was founded in 2008 and purchased\u00a0by eBay in 2011<\/a>in a deal reported to be just $180 million. The\u00a0company went private again in 2015<\/a>\u00a0with help from Permira Funds, which sources say paid around $200 million.<\/p>\n

Today the company sold for almost $1.7 billion. That\u2019s a hefty increase in value since that 2011 purchase and a tidy five times return for Permira, which brought in Hillhouse Capital Group last year as a fellow investor. At the time, Hillhouse invested\u00a0$250 million<\/a>\u00a0in Magento;\u00a0 presumably, it will see a nice return on its investment in just one year, too.<\/p>\n<\/div>\n

\n

Image Credits:\u00a0<\/strong>Lisa Werner \/ Contributor\u00a0\/\u00a0Getty Images<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

FROM TECH CRUNCH Adobe to acquire Magento for $1.68B https:\/\/techcrunch.com\/2018\/05\/21\/adobe-to-acquire-magento-for-1-6-b\/ Adobe announced today that\u00a0it was acquiring Magento for $1.68 billion. The purchase gives Adobe a missing e-commerce platform piece that works in B2B and B2C contexts and should fit nicely in the company\u2019s Experience Cloud. It should also help Adobe compete with Salesforce, which offers […]<\/p>\n","protected":false},"author":1,"featured_media":95,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[],"class_list":{"0":"post-93","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-adobe-aem","8":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/relevantmachine.com\/wp-content\/uploads\/2018\/05\/Adobe-and-Magneto-1260x840.png?fit=1260%2C840&ssl=1","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9oS35-1v","_links":{"self":[{"href":"https:\/\/relevantmachine.com\/index.php\/wp-json\/wp\/v2\/posts\/93","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relevantmachine.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relevantmachine.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relevantmachine.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relevantmachine.com\/index.php\/wp-json\/wp\/v2\/comments?post=93"}],"version-history":[{"count":1,"href":"https:\/\/relevantmachine.com\/index.php\/wp-json\/wp\/v2\/posts\/93\/revisions"}],"predecessor-version":[{"id":94,"href":"https:\/\/relevantmachine.com\/index.php\/wp-json\/wp\/v2\/posts\/93\/revisions\/94"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relevantmachine.com\/index.php\/wp-json\/wp\/v2\/media\/95"}],"wp:attachment":[{"href":"https:\/\/relevantmachine.com\/index.php\/wp-json\/wp\/v2\/media?parent=93"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relevantmachine.com\/index.php\/wp-json\/wp\/v2\/categories?post=93"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relevantmachine.com\/index.php\/wp-json\/wp\/v2\/tags?post=93"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}