Adobe Agrees to Buy Omniture for $1.8B in Cash


omniture_logo_mainAdobe (s adbe) said today it’s agreed to buy analytics and metrics firm Omniture (s omtr) for $1.8 billion in cash, or $21.50 a share. Customers want to integrate Adobe’s online products like Flash with services like those offered by Omniture, Adobe CEO Shantanu Narayen said during the conference call announcing the deal. With the purchase, Adobe diversifies its product offerings and takes advantage of the fast-growing SaaS market, on which Omniture focuses.

Narayen said it was “clear customers would like [Adobe] to do a lot more.” Media companies want to understand which rich video content is performing the best, for example, while advertisers and ad agencies that use Flash to produce online ads want to know the click-through rate of those ads in real time. Currently, Omniture integrates with Flash, but with the companies under the same umbrella, Adobe hopes to sell more of Omniture’s products to its existing customer base. One analyst noted during the Q&A that “all Omniture customers are probably Adobe customers, but not the other way around,” leaving a large customer base to which Adobe can push its wares.

Adobe has $2.6 billion in cash and short-term investments; company execs said it’s financing the deal through cash on hand and its existing credit facility.


Alex Hawkinson

This is a big move by Adobe. It sends a good signal to their customers, but they are going to need to keep innovating and the integration complexities are going to make that tough. At some level, this may end up creating even more room for innovation by startups in the space. A few more thoughts on it here –

Shankar Saikia


Some couples, despite the appearance of being odd, actually have good relationships. However, successful odd couples are rare. EBay + Skype was odd, as was Compaq + DEC. When companies merge or get acquired, there need to be important synergies as in the case of all of Oracle’s acquisitions. In the case of Adobe and Omniture the combo seems to lack the essential synergies. One is a hard core technology company, a software development powerhouse, that has done a great job of fighting off Microsoft in the area of desktop and digital publishing. The other is an advertising analytics company that provides a service. Adobe and Omniture are an odd couple – the investment bankers that brought these two together did a great sales job to the respective management committees and boards. This odd couple will find it difficult to survive.

Tadeu Banzato

To me it does sounds odd, but in the end if you think of advertising and flash for example, seems that they can’t live apart.
So in the end the acquisition makes a lot more sense then we think.


I could not agree more.
It is not only odd, it is really high risk with no guarantee of shareholder value. Wish them to make me wrong.

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