Adobe is Acquiring Magento
Adobe has made an announcement for acquiring Magento earlier this week. Let’s have a more profound look about what benefits and changes will this transaction could bring in the future for both the companies.
Benefits of Adobe
The fact that having a hole in the e-commerce cloud of Adobe will be filled in a greater way by Magento is the main thing that will really change. For B2B and B2C interactions, it would be a great part of their platform. The owner of the company CRM Essentials, Brent Leary, has said that it will be a fantastic addition to the Experience Cloud Adobe has. Also he stated that whatever the consumers need from the company, this will provide it with a full circle.
Keeping in mind that Adobe has filled the e-commerce void that they had previously, the Adobe’s competition with Salesforce over the last few years should also sway in their favor. For over $2 billion dollars, Salesforce bought the Demandware for themselves in 2016. As the company is on their way to rapidly exceed the revenue over 10 billion dollars in 2018, Adobe still has to put enough of a fight.
Benefits for Magento
At the price of almost 1.7 billion dollars, the company has been sold. Since their last purchase which was by eBay at the cost of $180 million dollars and was said to ba a much smaller deal in 2011, their increase in value has gone up considerably.
In just over a year, Hillhouse Capital Group which has invested $250 million dollars in Magento last year, are most likely to have a large investment.
Potential Downsides of Magento
Considering the fact that Magento mostly focuses on SMB customers, only seems to be the negative aspect of the deal. Adobe’s target customers are an enterprise which is different.
Salesforce and SAP, the top competitors of Adobe have managed to in purchasing such companies which are geared more towards enterprise. In the given circumstances, it is believed that Adobe has chosen the best choice available.
There are also some big-ticket customers with magento as well. The principle analyst at Constellation Research, Cindy Zhou, has stated that when it comes to commerce magento is a platform of choice. This has been a great decision for a lot of very large and mid-size companies like Coca-Cola.
A little later on we will be able to see whether the community product will stay opens as it us unclear up till now.
We are really looking forward on hoe the companies compliment and assist each other in the future and how the future look s like for both of the companies.