Abode shares closed marginally higher in the US Monday as the tech firm agreed to acquire Magento Commerce for $1.68 billion, in its biggest ever deal. The purchase will likely prove positive for Adobe’s Experience Cloud, providing a proven eCommerce platform for the business.
Adobe shares ended the US Monday trading session 0.01% higher at $238.10. The stock is also higher in after-hours activity.
Abode Magento deal
The purchase will bring Adobe’s Experience Cloud customers additional eCommerce functionality, allowing them to easily buy and sell a range of goods both digitally and physically, across a variety of industries.
Magento is a proven, scalable platform with numerous pre-built eCommerce related extensions, including payment, shipping, tax and logistics segments. Coca-Cola, Warner Music Group and Cathay Pacific are among existing Magento Commerce customers.
“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,” Adobe’s executive VP of its Digital Experience, Brad Rencher said.
Magento was also upbeat on the deal.
“We’re excited to join Adobe and believe this will be a great opportunity for our customers, partners and developer community,” Magento’s CEO, Mark Lavelle, said.
Once the deal completes, likely some time during the third quarter, Lavelle will continue to lead the Magento team, as it integrates into Adobe’s Digital Experience business. Lavelle will report to Rencher.
Adobe announces $8 billion stock repurchase
Adobe also announced Monday, that its board of directors had approved a new stock repurchase programme. Adobe will repurchase up to $8 billion worth of stock between now and the end of March 2021.
The programme is designed to reduce the number of Adobe stocks on the open market and offset previous dilution from stock issuances.
“Our ability to substantially increase Adobe’s stock repurchase program is reflective of our strong cash flow expectations and balance sheet and reinforces our commitment to returning value and excess cash to our stockholders,” Adobe CFO and executive VP, John Murphy, said.