Adobe aims to capture a bigger slice of the digital-commerce industry through the Magento acquisition.
Adobe announced that it has entered an agreement to acquire Magento, a well-known eCommerce content management software (CMS). The latter is currently owned by private equity firm Permira Holdings.
The acquisition is going to cost Adobe $1.68 billion and will close in the third quarter of 2018.
Magento is popular among online stores. It offers software to build and run web stores, handle online purchases, shipping and returns. According to Bloomberg, it supports more than $155 billion in gross merchandise volume including Canon and Rosetta Stone. The CMS software offers two versions, the open source version and the paid Commerce version.
With this acquisition, Adobe aims to take on other cloud-based commerce services Salesforce, Oracle and SAP. Adobe’s own Experience Cloud hasn’t generated as much revenue as its creative software products like Lightroom and Photoshop.
There are no details yet as to what changes will come to Magento once Adobe takes the reigns. The latter says it’ll share details when it’s ready to close the deal later this year.
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