Adobe Systems Incorporated entered into a definitive agreement to acquire Magento, Inc. from Permira Advisers Ltd. and Hillhouse Capital Management, Ltd. for $1.7 billion.
May 20, 2018
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Adobe Systems Incorporated (NasdaqGS:ADBE) entered into a definitive agreement to acquire Magento, Inc. from Permira Advisers Ltd. and Hillhouse Capital Management, Ltd. for $1.7 billion on May 21, 2018. The consideration is subject to customary purchase price adjustments. Until the transaction closes, each company will continue to operate independently. Magento reported revenues of $150 million in 2017. Pursuant to the transaction, Magento's Chief Executive Officer Mark Lavelle will continue to lead the Magento team as part of Adobe’s Digital Experience business, reporting to Executive Vice President and General Manager Brad Rencher.
The transaction is subject to regulatory and antitrust approval and customary closing conditions. As of June 6, 2018, the Federal trade commission granted the early termination notice. The transaction is expected to close during the third quarter of 2018.
Qatalyst Partners LP acted as financial advisor and Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal advisor to Permira Advisers Ltd. Betty Yap of Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to Hillhouse Capital and Permira Advisers Ltd. Jane Ross, Allison Donovan, Brittany Chiang, Lauren Zachry, John Brockland, Michael Frank, Jeffrey Tolin, Scott Loughlin, Clark Weymouth, Andrew Keller, Logan Breed, T. Weymouth, Robert Baldwin, Polly Sims, Patrick de Laperouse, Ben Clark, Ryan O'Carroll, David Mitchell, Catherine Chen, Ira Jamshidi, Mohammad Amer, Nathan Salminen, Alex Dolmans, Leire Aguirre, Silvia Bauz, Logan M. Breed and Falk Schöning of Hogan Lovells acted as legal advisor to Adobe Systems. JP Morgan acted as financial advisor to Adobe Systems Incorporated. Raymond James & Associates acted as financial advisor to Magento.
Adobe Inc. specializes in the development of software for content design, publication and visual distribution. Net sales break down by product family as follows:
- digital media software (73.3%): primarily creation, illustration, viewing, conversion and digital contents broadcasting;
- online marketing and business process management software (25.2%): web publishing, information security, business resources planning, document production management, application automation software, etc.;
- other (1.5%): software for high-definition printing, online training, etc.
Net sales break down by source of income between sales of subscriptions (94.2%), sales of services 3.4%; consulting, training, maintenance and technical support services) and sales of products (2.4%).
Net sales are distributed geographically as follows: the United States (53.9%), Americas (6.2%), Europe/Middle East/Africa (25.1%) and Asia/Pacific (14.8%).
Adobe Systems Incorporated entered into a definitive agreement to acquire Magento, Inc. from Permira Advisers Ltd. and Hillhouse Capital Management, Ltd. for $1.7 billion.
ADOBE INC. 
