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Adobe to acquire Magento for $1.68 B

Adobe announced today that it was acquiring Magento for $1.68 billion. The purchase gives Adobe a missing Ecommerce platform piece that works in B2B and B2C contexts and should fit nicely in the company’s Experience Cloud.

It should also help Adobe compete with Salesforce, which offers its own marketing, sales and service offerings in the cloud and bought Demandware for more than $2 billion in 2016 to provide a similar set of functionality.

Brent Leary, who owns CRM Essentials and keeps a close on the intersection between marketing and CRM, says this fills an obvious hole in Adobe’s Experience Cloud. “Now they have an offering that allows them to close the loop with consumers, who are able to finalize a digital transaction that started online with digital marketing tools Adobe already offered,” Leary explained.

Leary also sees this deal bringing Microsoft and Adobe, who have already announced partnerships in the past closer together. “But maybe even more interesting may be how this may further the relationship Adobe has with Microsoft. As they also are missing an Ecommerce piece to their customer engagement platform,” he pointed out. Leary speculates this could lead to an even deeper relationship between the two companies as they are each battling Salesforce.

Magento was founded in 2008 and purchased by eBay in 2011 in a deal reported to be just $180 million. The company went private again in 2013 with help from Primera Funds. Today the company sold for almost $1.7b. That’s a heft increase in value since that 2011 purchase.

This story is developing. More to come.

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Alphabet invests $375 million in Oscar Health

Google parent Alphabet has invested $375 million in next-gen health insurance company, Oscar Health. Google has been a longtime supporter of the six-year-old New York company, having previously invested in Oscar through its Capital G investment wing and Verily health and life sciences research wing. “Alphabet has invested in Oscar over many years and has seen the company and its team up close. We’re thrilled to invest further to help Oscar in its next phase of growth,” an Alphabet spokesperson told TechCrunch. That $165 million round raised back in March valued the health startup at around $3 billion. The new round maintains a similar valuation, while giving Alphabet a 10 percent share in Oscar. The deal also has longtime Google employee and former CEO Salar Kamangar joining Oscar’s board. Oscar co-founder and CEO Mario Schlosser announced the news in an interview with Wired, telling the site, “We can hire more engineers, we can hire more data scientists, more product designers, more smart clinicians who can think about health care a different way. It’s the acceleration of that product roadmap that fascinates us the most. The second, more tangible piece, is that we’re launching new product lines.” Part of that product expansion includes getting into Medicare Advantage in 2020, which is a deviation from the current offerings in the individual and employer insurance markets. Oscar started out by offering insurance for individuals, growing rapidly during the launch of the Affordable Care Act and then rolling into small business offerings with its product Oscar for Business. Medicare represents a new vertical for the company, adding to its existing focus on both the individual and employer insurance markets. “Oscar will accelerate the pursuit of its mission: to make our health care system work for consumers,” Schlosser said in a statement provided to TechCrunch. “We will continue to build a member experience that lowers costs and improves care, and to bring Oscar to more people — deepening our expansion into the individual and small business markets while entering a new business segment, Medicare Advantage, in 2020.”

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