Adobe plans to get into the online shopping
business by paying $1.68 Billion for e-commerce Company Magento commerce. Adobe
is known for its Photoshop tools. But it’s quickly expanding into other
businesses as it looks for new areas of growth.
Companies like Canon and designer
Paul Smith use Magento’s technology to operate their online stores. Both Adobe
and Magento share similar customers like Warner Music Group, Coca-Cola,
and Nestlé, Adobe said. Having similar customers is significant because Adobe
can better cross-sell its various tools and services.
Magento, founded in 2007, was
acquired for an undisclosed amount by eBay in 2011. A few
months after eBay split with digital payment processing
company PayPal in 2015, eBay sold its enterprise software unit,
including Magento, to investors Sterling Partners and Permira Funds for $925
million. Last year, Magento raised $250 million from Chinese
investment firm Hillhouse at a reported private valuation of $700 million.
Salesforce
is the 10,000-pound gorilla in this space with revenue across its various
clouds reaching more than $8 billion last year. The company is on a run rate
to exceed $10 billion in 2018. It has set a long-term company goal to
reach $60 billion in annual revenue by 2034.
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