In an effort to up its e-commerce capabilities, Adobe announced in a Monday press release that it would be acquiring Magento Commerce for $1.68 billion. As such, the Magento Commerce Cloud will be folded into the Adobe Experience Cloud, to bring commerce functionality to Adobe B2B and B2C customers.
For those unfamiliar, Magento offers digital commerce tools, predictive intelligence, and order management. The tool is somewhat of a one-stop shop for adding e-commerce capabilities to a company, and both Magento and Adobe share customers like Coca-Cola, Warner Music Group, Nestlé, and Cathay Pacific, the release said.
“Commerce is also integral to the customer experience. Consumers and businesses now expect every interaction to be shoppable – whether on the web, mobile, social, in-product or in-store,” the release said.
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Adobe is more known for its content creation tools like the Creative Cloud, along with marketing, advertising, and analytics efforts. However, with Magento, Adobe adds a welcome addition to its Experience cloud, where it hopes to grow revenue to supplement the cash it makes from its creative tools.
By broadening its enterprise offerings, Adobe is setting itself up as more of a direct competitor to firms such as Salesforce, Oracle, and SAP, as noted by Bloomberg. Combining these commerce capabilities with the analytics it offers through Omniture (another major acquisition), Adobe could provide some of the similar metrics and information offered by Salesforce.
Where the difference lies is in the target audience. Magenta has been an SMB offering since 2015, and brought out a starter offering for smaller customers in 2017. This could help bring more SMBs into the fold at Adobe, which has traditionally been considered an enterprise-focused organization.
Magento CEO Mark Lavelle will continue to lead the company under Adobe’s Digital Experience business. The deal is expected to close in the third quarter of Adobe’s 2018 fiscal year, the release said.
The big takeaways for tech leaders:
- Adobe has agreed to buy Magento Commerce for $1.68 billion, bolstering its e-commerce capabilities.
- The addition of commerce tools could help Adobe better position itself as a provider of business cloud tools, competing with SAP and Salesforce.