Wall Street responded favorably on Monday following Adobe’s announcement that it plans to acquire the privately-held e-commerce platform Magento for $1.68 billion.
Adobe shares popped a slight 0.68% in after hours trading, though analyst notes remained positive on the news.
“Overall, we view the acquisition as a sensible extension into the digital commerce market,” said Evercore ISI analyst Kirk Materne in a note Monday.
Magento’s platform competes with companies like Shopify and BigCommerce. Analysts lauded the deal for its potential to position Adobe as a strong contender against Salesforce in the arena of digital marketing and customer relationship management (CRM).
Adobe, best known products like Photoshop and Adobe Reader, plans to add Magento’s e-commerce product to its Experience Cloud, which currently includes analytics, advertising and marketing tools.