Permira, Hillhouse agree $1.7b Magento exit
Permira and Hillhouse Capital will sell their stakes in Magento Commerce, a US company that provides transaction-processing software to e-commerce players, to Adobe as part of a $1.7 billion transaction.
Magento was acquired by Permira in 2015 during a spin-out from eBay. Hillhouse invested $250 million in the company last year to support its Asian expansion agenda, though Permira retained a majority stake. Financial details regarding the firms’ respective exits have not been disclosed.
Value-add measures have included the creation of a cloud platform for businesses of all sizes that facilitates business and intelligence management, as well as assistance with a number of hires in marketing and product development. Expansion initiatives were supported by a strategic stratification of operations into B2B and B2C verticals and the acquisition of adjacent businesses.
“Permira was a phenomenal partner over the last three years, helping us successfully execute our global growth plan,” Mark Lavelle, CEO of Magento, said in a statement. “We leveraged Permira’s deep industry knowledge, operational expertise and international relationships to become one of the most popular commerce platforms in the world.”
Founded in 2008, Magento provides enterprise clients with digital commerce support that includes a one-stop-shop for operations such as the launch, promotion, management and scaling of online stores. Its product suite focuses on cloud-based software-as-a-service offerings aimed at integrating digital and physical shopping experiences.
The company had more than 250,000 customers as of last year, including Adobe, Coca-Cola, Canon, and Cathay Pacific. This ecosystem is said to support flexibility for the platform by allowing for the integration of thousands of capability extensions related to payments, shipping, tax, and logistics. Revenue during calendar year 2017 came to about $150 million.
UK-based Permira has about EUR32 billion ($37 billion) in committed capital. It has been active in Asia for more than a decade, deploying more than $3 billion via offices in Tokyo, Hong Kong, Seoul, and Shanghai. Last month, the firm put plans for its debut Asia fund on hold in order to prioritize its existing investments in the region.
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