In one of the biggest deals of the year, Adobe is all set to acquire Magento, an e-commerce company for a whopping $1.68 billion. The move will help Adobe take on competition from Oracle and Salesforce in the highly competitive cloud-based service provider segment.
Magento, which is based in California primarily provides software which is used to operate web stores, which includes the ability to manage online transactions and logistics. Merchants can also use the platform to sell their products via social media advertisements.
Magento currently supports gross merchandise volumes in excess of $155 billion, with Adobe likely to supplement its digital marketing services arm, Experience Cloud, through the purchase.
Adobe has been known to go big when it comes to acquiring companies, with it having paid $1.8 billion to buy Omniture in 2009. Omniture primarily develops metric measurement and web analytics tools.
The deal to acquire Magento is likely to be completed by Q3 of the FY (followed by Adobe). Founded in the year 2008, Magento was acquired by eBay in 2011, with the deal valued at $180 million. The year 2015 saw Permira Funds paying approximately $200 million to make it a private entity.
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