Business News
Adobe to Acquire Omniture
Wednesday 16. September 2009 - Combined Company Will Deliver Comprehensive Solutions for Creation, Delivery and Optimization of Content and Applications
Adobe Systems Incorporated (Nasdaq:ADBE) and Omniture, Inc. (Nasdaq:OMTR) today announced the two companies have entered into a definitive agreement for Adobe to acquire Omniture in a transaction valued at approximately $1.8 billion on a fully diluted equity-value basis. Under the terms of the agreement, Adobe will commence a tender offer to acquire all of the outstanding common stock of Omniture for $21.50 per share in cash.
Adobes acquisition of Omniture furthers its mission to revolutionize the way the world engages with ideas and information. By combining Adobes content creation tools and ubiquitous clients with Omnitures Web analytics, measurement and optimization technologies, Adobe will be well positioned to deliver solutions that can transform the future of engaging experiences and e-commerce across all digital content, platforms and devices.
The combination of the two companies will increase the value Adobe delivers to customers. For designers, developers and online marketers, an integrated workflow with optimization capabilities embedded in the creation tools will streamline the creation and delivery of relevant content and applications. 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.
“Adobe customers are looking to us for solutions to deliver engaging experiences and more effectively monetize their content and applications online,” said Shantanu Narayen, president and chief executive officer of Adobe. “This is a game changer for both Adobe and our customers. We will enable advertisers, media companies and e-tailers to realize the full value of their digital assets.”
“Omnitures mission has been to enable our customers to optimize every digital interaction,” said Josh James, CEO of Omniture. “By joining forces with Adobe, we will accelerate our ability to deliver on that vision and together bring new innovation to the market that improves content engagement, advertising effectiveness and the overall user experience, which will drive more advertising dollars online.”
Expanded Opportunities for Adobe and Omniture
This acquisition will significantly expand Adobes addressable market and growth potential, broadening solutions Adobe provides to the rapidly growing Internet advertising, e-commerce and digital media markets.
The combination will also expand Adobes offering of mission-critical solutions to the enterprise customer. Adding the capabilities of Omniture will further enhance Adobes offerings and ability to appeal to online marketers, including chief marketing officers.
The acquisition of Omniture will further diversify Adobes business, adding a scalable SaaS platform that captures over a trillion transactions per quarter, an expansive partner ecosystem, and a recurring revenue model.
For Omniture, joining Adobe will provide global operational scale and the ability to more quickly penetrate new geographies and markets, thereby accelerating its go-to-market strategy and growth potential.
Integration and Closing Details
As part of the expected integration of the two companies, Omniture will become a new business unit within Adobe. Omnitures CEO, Josh James, will join Adobe as senior vice president of the new business unit, reporting to Adobes president and CEO, Shantanu Narayen.
The completion of the transaction, which is subject to customary government approvals and the satisfaction of other customary conditions, is expected to close in the fourth quarter of Adobes 2009 fiscal year.
The proposed offer represents a premium of 45 percent over Omnitures average closing price for the last 30 trading days through yesterdays close.
Adobe believes the acquisition will be accretive to Adobes non-GAAP earnings in fiscal year 2010.