CAMPBELL, CA — Magento Commerce, a spinoff of eBay, announced that Hillhouse Capital will make a $250 million investment in the company to fuel the worldwide expansion of sales, marketing & client support, new product innovation and future acquisitions.
Hillhouse is a leading investor known for its long-term investments in companies across all equities stages in China and around the world. Hillhouse is partnering with the Magento management team and the Permira funds, who will continue to own a majority stake in the company, in backing the long-term vision of the company.
“Since becoming an independent company only one year ago, Magento is already the largest global commerce platform in the world,” said Mark Lavelle, CEO of Magento Commerce. “Our powerful, cloud-based open platform is supported by a vast global ecosystem of solution integrators and technology partners to enable over 250,000 clients who collectively generate more than $50 billion in annual merchandise volume. But we are only just getting started.”
Lavelle added, “In addition to the capital that will accelerate our growth, this investment brings the experience and long-term perspective of another marquee investor. Both Hillhouse and Permira see that in nearly every industry, there is a major secular acceleration taking place driving demand for digital commerce technology. Yet clients have few options when looking for a company whose sole focus is on digitizing the customer experience across all channels where commercial transactions occur. Magento’s goal is to be the leading company for the next generation of commerce innovators, and it is a privilege to have two prominent technology investors backing our vision.”
Mr. Lei Zhang, Hillhouse Chairman and CEO, said, “We see tremendous growth opportunities for Magento globally and specifically in Asia. We are excited to be partnering with such an exceptional management team to continue to build and grow the business over the long-term.”
Following its separation from eBay in November 2015 with the backing of the Permira funds, Magento has assembled a new management team and shifted its business strategy with the release of the Magento Commerce Cloud, an advanced public-cloud platform that optimizes the performance, security and extendibility of the popular Magento Enterprise Edition for digital commerce. The platform offers seamless integration with the company’s SaaS-based product portfolio; Magento Commerce Order Management, which enables advanced omni-channel catalog, payment and fulfilment capabilities and the newly acquired Magento Analytics.