Abobe takes on Amazon

Article Excerpt

ADOBE SYSTEMS INC. $256.13 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 492.5 million; Market cap: $124.4 billion; No dividends paid) has agreed to buy e-commerce software company Magento Commerce for $1.68 billion. That firm produces software to combine digital e-commerce, order management, and predictive intelligence across shopping platforms. The Magento Commerce Cloud product will combine with the Adobe Experience Cloud. It will add digital commerce capability and order processing for both physical and digital goods across a range of industries. Magento’s software facilitates order processing, but also provides new ways to improve customer purchasing rates and overall sales for vendors. The deal is a big one for Adobe—clients using Magento sell $155.0 billion in goods and services annually. That compares with eBay’s $88.4 billion and Amazon.com’s $313.4 billion. Adobe Systems is a hold. hold. …