Adobe Acquire Magento

It was announced last week that Adobe will be acquiring Magento in a deal worth $1.68b. For Adobe, the acquisition means the completion of the commerce loop that was previously missing from their ecosystem. Their customers will now be able to complete an online transaction that started with marketing tools Adobe already offers. For Magento, the acquisition benefits are still speculative, but this is undoubtedly a significant turning point in the history of the platform. This acquisition could see Magento reinvented over the next decade.

Adobe’s previous efforts to enter the eCommerce space haven’t been successful, and they’ve always lacked an offering that allowed them to compete with Salesforce. With the acquisition of Magento - a natural fit for Experience Cloud - their commerce loop is not only complete, it’s supercharged with Adobe’s existing stack of cool technology.

For Magento, this means that much needed push in refining their core product offering. Magento has struggled to seamlessly integrate with key business functions - components like analytics, marketing and content management, and smart technologies like personalisation engines. The acquisition of RJ Metrics last year was a move forward, but even this was missing the machine learning element to really shine as a standout offering.

Adobe brings that much needed edge and Adobe Sensei is tipped as the application to watch, already recognised as having the potential to raise the bar on what Magento can achieve. In its current application, This type of smart technology is an obvious advantage to a merchant competing in a crowded industry. To learn more about Adobe Sensei, I recommend reading Rom Tobertshaw’s post.

From a business perspective, Magento also acquires the operational maturity of Adobe. This will undoubtedly propel Magento solidly into an enterprise offering and accelerate Magento’s transformation from a licensing business into a cloud enterprise. Although magento seems to still be supporting SMB as indicated by their outreach to the community, industry speculation is pointing to a definite transition to mid market.

All in all, the acquisition has been regarded positively. With both companies standing to gain a foothold forward, we’re eagerly waiting to see the evolution roadmap that Adobe will roll out.

All in all, the acquisition has been regarded positively. With both companies standing to gain a foothold forward, we’re eagerly waiting to see the evolution roadmap that Adobe will roll out.

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