Adobe Systems (ADBE) on Monday said it has agreed to purchase privately held Magento Commerce for $1.68 billion, sending down shares in Magento’s e-commerce rival, Shopify (SHOP), in late trades.
Adobe also said its board of directors has approved a new $8 billion stock repurchase program that will run through 2021. Its current $2.5 billion buyback ends later this year, the company said.
Shares rose 1% to 240.50 in late trades on the stock market today. Shopify fell 3.8% to 139.
Magento customers include brands like Canon, Helly Hansen, Paul Smith and Rosetta Stone.
Purchase Closing In September
Adobe ranks No. 22 in the IBD 50 roster of growth stocks. The company said it expects the Magento purchase to close in the September quarter. Magento Chief Executive Mark Lavelle will stay on with the newly merged entity.
Magento has also focused on the enterprise market — large companies — along with Oracle (ORCL) and Salesforce.com (CRM). Startup BigCommerce is another player in the e-commerce market.
“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,” Brad Rencher, Adobe’s executive vice president for digital experiences, said in a press release.
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