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Adobe Systems Incorporated is set to acquire digital marketing optimization company Omniture for US$1.8 billion in an effort to bolster and diversify both companies' technological capabilities and client base. The acquisition will combine the world's largest provider of design and content creation tools with the leading measurement and analytics company. The deal will allow Adobe to expand into the rapidly growing advertising market online. You will see this acquisition significantly expand Adobe's addressable market and growth potential, broadening solutions Adobe provides to the rapidly growing Internet advertising, e-commerce and digital media markets
When I read this I thought, wow... where is the logic for this to happen? But I guess Adobe can leverage a number of relationships that exist with Omniture and try to use those to bolster their Adobe reach. Not a natural extension and frankly this took me by surprise.
In the companies news release, the Omniture spokeswoman said, "the merger, which will see the analytics company become an operational unit under Adobe, is not expected to affect operations or staff in Asia-Pacific".
Further, the news release said, Omniture’s external business deals, including a deal brokered with WPP earlier in the year, are also not expected to change.
Omniture has eight offices across the region, in Tokyo, Seoul, Hong Kong, Taipei, Beijing, Singapore, Melbourne and Sydney, which is its regional headquarters. Its global headquarters is in Utah.
According to the companies’ statement, Omniture will be able to bank on Adobe’s global client base to “more quickly penetrate new geographies and markets, thereby accelerating its go-to-market strategy and growth potential”, while Adobe will benefit from the deal by providing clients with digital measurement tools.
“This optimization will enable advertisers, advertising agencies, publishers and e-tailers to achieve greater ROI from their digital media investments and improve their end users' experiences,” the companies stated.
The merger will see Omniture CEO Josh James join Adobe as senior vice-president of the new business unit. He will report to Adobe's president and CEO Shantanu Narayen.
According to the Omniture spokeswoman, the deal is expected to be completed by the end of the fourth quarter.
I guess we may see a couple of things happen in Adobe in the future and this may join the dots for me on why this deal was done. Does anyone else has theories?
Written on Wednesday, 16 September 2009 14:02 by Matt McDougall
