Adobe Systems Inc., a leader in online content technology widely used by online retailers, has agreed to acquire Omniture Inc., a major provider of web analytics and web content optimization applications in a cash-for-stock deal valued at about $1.8 billion.
Top executives of the two companies say combining their technologies will improve their offerings for web retailers and advertisers and online marketing networks.
“Omniture’s mission has been to enable our customers to optimize every digital interaction,” says Omniture CEO Josh James, who will join Adobe as senior vice president of the new Omniture business unit and report to Adobe president and CEO Shantanu Narayen. “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.”
Adds Narayen: “Adobe customers are looking to us for solutions to deliver engaging experiences and more effectively monetize their content and applications online. 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.”
Jim Okamura, a senior partner with retail consultancy J.C. Williams Group, says the combined companies could address a trend toward leveraging both web analytics and digital content management. “This seems like a pretty good fit to me,” he says. “It’s a continuation of the broad trend to improve online content development and management along with enterprise-wide analytics.”
Under terms of the acquisition agreement, Adobe will pay $21.50 in cash per outstanding share of Omniture’s common stock, representing a 45% premium over Omniture’s average closing price for the last 30 days. The deal is expected to close in the fourth quarter, the companies say.
In 2007, Adobe acquired Scene7, a provider of rich media applications widely used by online retailers.