Adobe announced on Monday that it was acquiring eCommerce platform Magento Commerce for $1.68 Billion. The deal is all cash and is Adobe’s most significant purchase in a decade. Magento was acquired by Permira from eBay Inc in 2015.
The acquisition of the eCommerce platform fills in the missing eCommerce piece of Adobe’s Experience Cloud.
Brent Leary of CRM Essentials told TechCrunch “Now 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.”
The deal also helps Adobe better compete with Salesforce, which offers a similar suite of cloud services and recently purchased Demandware for $2billion in 2016.
This isn’t the first time Magento has been to the acquisition rodeo. Magento was founded in 2008 and then sold to eBay in 2011 for just $180 million. The company went private again with help from Permira Funds which reportedly paid $200 million for the company in 2015. Today’s sale to Adobe for $1.68 billion gives Permira a sweet 5x return on its original investment.
The deal is expected to close in the Q3 of Adobe’s 2018 fiscal year.
Magento CEO Mark Lavelle will continue to lead the Magento team, reporting to executive vice president and general manager Brad Rencher.