Adobe Systems Inc said on Monday it would buy e-commerce services provider Magento Commerce, from private-equity firm Permira for $1.68 billion in cash, the deal is the largest for almost a decade.
Adobe Systems Inc software box seen in Los Angeles, California, USA, 13. In March 2017. REUTERS/Lucy Nicholson
Shares of Adobe rose about 1 percent in extended trading after the Photoshop maker also said it would buy back up to $8 billion in shares through fiscal year 2021.
Adobe said the deal will help strengthen your experience of Cloud business services including analytics, advertising, and marketing.
“Adobe is the only company advertising with the leadership in the content creation, marketing -, analytics-and now-commerce in real-time experience, and about the entire customer journey,” Brad Rencher, executive vice president and general manager at Adobe, in a statement.
Magento was acquired by Permira from eBay Inc in the year 2015 and is one of Canon’s, Helly Hansen, Paul Smith and Rosetta Stone to its customers.
“Magento has grown its customer base and enterprise cloud business as a result of investments in technology, marketing, customer success, sales management, and the open-source community ecosystem,” Phil Guinand, a partner at Permira, said in a statement.
Magento to share customers such as Coca-Cola, Warner Music Group, Nestle, and Cathay Pacific with Adobe, the company said.
The transaction is expected to close during Adobe the third quarter of the fiscal year.
Qatalyst Partners acted as financial Advisor to Permira and Fried, Frank, Harris, Shriver & Jacobson acted as legal Advisor.