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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.

7 Responses to “Adobe Agrees to Buy Omniture for $1.8B in Cash”


    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.