Adobe has bought e-commerce business Magento for $1.68 billion as it sets its sights on the retail sector, taking on the likes of Salesforce and Oracle.
Magento develops the tools retail businesses need to take their stores online, and comprises software to build those websites, plus customer experience tracking, as well as the actual infrastructure to process payments.
The platform was actually originally owned by eBay, but the retail giant sold the company in 2015 to private equity firm Permira Holdings LLP.
"Adobe is the only company with leadership in content creation, marketing, advertising, analytics and now commerce - enabling real-time experiences across the entire customer journey," said Brad Rencher, executive vice president and general manager of digital experience at Adobe.
"Embedding commerce into the Adobe Experience Cloud with Magento enables Adobe to make every moment personal and every experience shoppable."
Selling to Adobe means Magento will have a whole lot of digital heft behind it, allowing the firm to grow its presence in the marketplace. However, it's not clear whether Magento will continue to operate under its own name or become an Adobe-branded product.
In turn, Adobe will look to compete against Salesforce, Oracle and SAP's e-commerce services.
Adobe said it anticipates the deal closing in the third quarter of its financial year. Magento's CEO, Mark Lavelle, will join Adobe’s digital experience business, which it's expected Magento will slip into. The division focuses on marketing analytics and software for managing online advertising.
“Adobe and Magento share a vision for the future of digital experiences that brings together Adobe’s strength in content and data with Magento’s open commerce innovation,” Lavelle said in a statement. “We’re excited to join Adobe and believe this will be a great opportunity for our customers, partners and developer community.”
