The acquisition is aimed at bolstering Adobe’s Experience Cloud business.
In what is stated to be Adobe Systems Inc’s biggest deal in a decade, the U.S. software company disclosed it would be acquiring Magento Commerce, an e-commerce services provider, from private equity firm Permira for $1.68 billion in cash.
Following the news, shares of Adobe rose by 1% in extended trading. Adobe also stated it would be buying back up to $8 billion of its shares through fiscal year 2021.
The deal is aimed at bolstering its Experience Cloud business, which provides services including analytics, advertising and marketing.
“Adobe is the only company with leadership in content creation, marketing, advertising, analytics and now commerce – enabling real-time experiences across the entire customer journey,” said Brad Rencher, an executive vice president and general manager at Adobe.
Permira acquired Magento from eBay Inc in 2015 and counts Canon, Helly Hansen, Paul Smith and Rosetta Stone among its clients.
“Magento has grown its customer-base and enterprise cloud business as a result of key investments in technology, marketing, client success, sales management and the open-source community ecosystem,” said Phil Guinand, a partner at Permira, in a statement.
The transaction is expected to close during Adobe’s fiscal third quarter.
While Shriver & Jacobson, Fried, Frank, Harris acted as Permira’s legal adviser, Qatalyst Partners acted as its financial adviser.