Adobe Systems said on Monday it would buy e-commerce services provider Magento Commerce from private equity firm Permira for US$1.68 billion in cash, its biggest deal in nearly a decade.
Shares of Adobe were up about 1 percent in extended trading after the Photoshop maker also said it would buy back up toUS$8 billion of shares through its fiscal year 2021.
Adobe said the deal would help bolster its experience cloud business, which provides services including analytics, advertising and marketing.
Magento was acquired by Permira from eBay in 2015 and counts Canon, Helly Hansen, Paul Smith and Rosetta Stone among its clients.
Magento also share customers including Coca-Cola, Warner Music Group, Nestle and Cathay Pacific with Adobe, the company said.
Brad Rencher, executive vice president and general manager, digital experience, Adobe, said: “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.
"Embedding commerce into the Adobe Experience Cloud with Magento enables Adobe to make every moment personal and every experience shoppable."
Mark Lavelle, chief executive of Magento, said: “Adobe and Magento share a vision for the future of digital experiences that brings together Adobe’s strength in content and data with Magento’s open commerce innovation.
"We’re excited to join Adobe and believe this will be a great opportunity for our customers, partners and developer community.”
Upon close, Lavelle will continue to lead the Magento team as part of Adobe’s Digital Experience business, reporting to Rencher.
The transaction is expected to close during the third quarter of Adobe’s 2018 fiscal year.
Qatalyst Partners acted as financial adviser to Permira, and Fried, Frank, Harris, Shriver & Jacobson acted as legal adviser.