Shareholders and bankers

So naturally, Adobe’s stock rose over the past two days, though it’s unclear if the credit goes to the announcement of the acquisition or the buyback. Regardless, it’s certainly happy days for Adobe shareholders.

Adobe bought Magento Commerce from Permira, a European private equity fund, who had acquired the company from eBay Enterprise just three short years ago. Considering their principals will earn a 5x return – netting over a billion dollars – on their 3-year investment, it’s safe to say there are some happy investment bankers as a result of this transaction too.

But what does it mean for everyone else? Well, let’s take a look.