TORONTO – Shares of Shopify Inc. slumped Tuesday on news that its rival Magento Commerce was bought by Adobe Systems Inc.
The e-commerce company’s stock closed at $177.66 in Toronto on Tuesday, marking a 6.12 per cent drop, one day after the U.S. software giant announced the acquisition. Shopify shares on the New York Stock Exchange closed at US$138.75, down nearly four per cent.
Adobe, best known for its Photoshop picture editing software, on Monday said it had signed a US$1.68-billion agreement to buy Campbell, Calif.-based Magento.
Magento’s platform helps companies set up online stores and manage orders. Its customers include Canon, Helly Hansen and Paul Smith. Adobe and Magento share joint customers including Coca-Cola, Warner Music Group, Nestle and Cathay Pacific.
Adobe said the acquisition will enable e-commerce to be seamlessly integrated into its own platform.
“Embedding commerce into the Adobe Experience Cloud with Magento enables Adobe to make every moment personal and every experience shoppable,” said Brad Rencher, Adobe’s executive vice president and general manager of digital experience in a statement on Monday.