Adobe agreed to acquire Marketo, a market-leading cloud platform for B2B marketing engagement, for $4.75 billion. The sale is subject to customary purchase price adjustments.
With nearly 5,000 customers, Marketo brings together planning, engagement and measurement capabilities into an integrated B2B marketing platform.
Adding Marketo’s engagement platform to Adobe Experience Cloud will enable Adobe to offer an unrivaled set of solutions for delivering transformative customer experiences across industries and companies of all sizes.
Today, consumers have a very high bar for what makes up a great customer experience.
Adobe Experience Cloud has enabled B2C companies to drive business impact by harnessing massive volumes of customer data and content to deliver real-time, cross-channel experiences that are personal and consistent.
When businesses buy from other businesses, they now have the same high expectations as consumers.
Marketo is a feature-rich and cloud-native platform with significant opportunities for integration across the Adobe Experience Cloud.
Enterprises of all sizes across industries rely on Marketo’s marketing applications to drive engagement and customer loyalty. Marketo’s ecosystem includes over 500 partners and an engaged marketing community with over 65,000 members.
This acquisition brings together the richness of Adobe Experience Cloud analytics, content, personalization, advertising and commerce capabilities with Marketo’s lead management and account-based marketing technology to provide B2B companies with the ability to create, manage and execute marketing engagement at scale.
“The imperative for marketers across all industries is a laser focus on providing relevant, personalized and engaging experiences. The acquisition of Marketo widens Adobe’s lead in customer experience across B2C and B2B and puts Adobe Experience Cloud at the heart of all marketing.”
Brad Rencher, executive vice president and general manager, Digital Experience, Adobe
Hint at Magento’s Upscale Future?
Adobe willingness to acquire a B2B marketing engagement platform for nearly $5 billion should raise eyebrows.
This deal will help Adobe better compete with Salesforce, which entered the marketing-automation business through its $2.5 billion purchase of ExactTarget in 2013.
As Adobe adds more cloud-based products to its portfolio, it appears Magento’s future may be with the higher end mid-level to enterprise market.
When the company acquired Magento Commerce, it mentioned supporting open source development. But the marketing focus has been on the revenue generating Magento Commerce cloud-platform.
Adobe had announced it will continue to support the open-source Magento 1 platform until June 2020. But the company is already promoting switching to Magento Commerce Cloud and even offers 6-month free service with a 24-month subscription contract.
READ MORE: Magento 1 Support Confirmed Up To June 2020
No question, Adobe is integrating great lines of cloud-based products and services. However, for small businesses operating on a limited budget, there are plenty of warning signs that the days of free or nearly free open-source Magento will end.
What is your thought on Adobe’s future with Magento considering a new acquisition that aims at the mid-level to enterprise market? Let us know in the comments section below or head over to our Facebook Group.