Adobe’s acquisition of Magento –What to Expect?

Adobe announced its agreement to acquire the ecommerce company Magento for $1.68 billion. This could mean a lot of changes on B2B as well as B2C experiences.

Adobe has positioned their Experience Cloud as a leader in Gartner’s Magic Quadrant. It now adds the missing piece to complete a customer’s journey by purchasing Magento. The e-commerce platform allows to complete transactions and offers a complete customer experience by including subsequent customer relationship management. Adobe customers can soon expect the fully integrated solution with Experience Cloud.

Both Adobe and Magento are at a benefit from this acquisition. Adobe gets an immediate entry into the SMB market whereas Magento gets the much needed exposure to enterprise clients.

There are speculations as to whether Magento will be able to keep pace with technology innovations and how Adobe can support the company that ruled the mid market.

 “Magento has become the commerce platform of choice for many big and mid-size companies including Coca Cola. There is great synergy for Adobe to complete the customer journey,” – Cindy Zhou, VP and principal analyst at Constellation Research

The road may not be smooth for a seamless integration with Magento being an open source platform and Adobe being a restricted one. It is expected that Adobe will not cut off this version upon their acquisition as ultimately they would want to build up Magento’s market share.

Brent Leary, the owner of CRM Essentials also sees this deal as a rekindle between Microsoft and Adobe with Salesforce being their mutual competitor.

The addition of the ecommerce element to Adobe tightens the competition against giants like SAP and Salesforce who have both added ecommerce element with their recent acquisitions. SAP acquired Hybris while SalesForce acquired Demandware.

Magento, founded in 2008 was purchased in just three years by eBay in 2011 for $180 million. The company went private again with help from Permira Funds in 2015. Adobe now announced that it is acquiring Magento for 1.68 Billion dollars (USD)

Author : Preetha Tojy Date : 07 Jun 2018