Shares of e-commerce platform Shopify plunged as much as 5 percent after Adobe announced the acquisition of rival e-commerce platform Magento Commerce.

Adobe said on Monday that it’s paying $1.68 billion for Magento. Magento is a cloud-based e-commerce service used by companies including Coca-Cola, Warner Brothers Music, Canon, and Nestle. Businesses use Magento and Shopify to handle the complexities of e-commerce and boost revenue.

Adobe CFO Brad Rencher said in the statement that Magento will add to the company’s suite of digital products for businesses.

“Adobe is the only company with leadership in content creation, marketing, advertising, analytics and now commerce — enabling real-time experiences across the entire customer journey,” he said.

Shopify, which went public in 2015, is one of the most valuable publicly-traded cloud software companies, with a market capitalization of over $15 billion at Monday’s close. The stock, which is up 43 percent this year, slumped as much as 4.8 percent to $137.60 in extended trading after the announcement.

A Shopify representative did not immediately respond to a request for comment.

Adobe’s acquisition of Magento is just the latest deal for a back-end e-commerce company. Last month, Square announced it would acquire website builder Weebly for $365 million. The deal was touted as a way to allow small business customers to use both Weebly and Square to easily build websites and online stores.

Magento CEO Mark Lavelle said in the statement that the combination “will be a great opportunity for our customers, partners and developer community.”

Source: Tech CNBC
Shopify slumps after Adobe announces acquisition of e-commerce rival Magento