- General
- May 22, 2018
- 3 minutes read
Magento Commerce acquired for $1.68 Billion by Adobe
image credit: Adobe 11 years after its founding, Popular e-commerce platform for open innovation has been acquired in a huge…
image credit: Adobe
11 years after its founding, Popular e-commerce platform for open innovation has been acquired in a huge deal worth $1.68 Billion from technology focused private equity firm Permira which notably purchased a slice of Cisco’s Video business earlier this month for a huge $1 Billion.
This will see Magento’s platform which provides a wide range of tools, features and add-ons for businesses to host e-commerce solutions just like its major popular competitor Shopify integrate into Adobe’s Experience Cloud to provide much more better Business-to-Business and Business-to-Consumer solutions in the e-commerce space adding this major industry to Adobe’s list of offerings.
Magento which currently shares customers with $100 Billion+ giant Adobe many of which include huge brands Nestle, Coca-Cola and the Time Warner Music Group will merge their digital experiences and innovations which increases Adobe’s content strength, Market share and product efficiency driving up revenues while giving customers the best product they can get their hands on.
Magento has quite a history in the e-commerce space, Just 4 years after the company’s start, It was acquired by major player eBay for $925 million, 6 years later, The company raised $250 million at a lower valuation of $700 million and then gets acquired for more than double that amount the following year.
This marks a very good feat for the company which shows that it has grown heavily and is slated to rival its competitors at a very huge rate, Magento made a cool $150 million in revenue last year whilst still being open source making it a very unique company in the e-commerce space.
Even after this acquisition, Magento’s CEO Mark Lavelle who helmed his position in the year 2015 will continue to lead the company as it continues to expand revenues rapidly while having huge market share and taking a high position in the rankings of Enterprise Businesses e-commerce providers out there.
The deal is expected to be fully completed by the third quarter of this year with Adobe currently having a valuation $117 Billion as of writing and a huge $7.3 Billion in last year revenue.
