Adobe to Buy Analytics Giant Omniture

  |  September 15, 2009   |  Comments

UPDATE: Developer of design and content creation tools teams up with a measurement and analytics company in $1.8 billion deal.

Adobe will buy analytics giant Omniture for $1.8 billion, the companies announced today. The acquisition will combine the world's dominant provider of design and content creation tools with a leading measurement and analytics company.

The deal will allow Adobe -- provider of Reader, Flash, Photoshop, and many other creative and content tools -- to expand into the rapidly growing online ad market. "This acquisition will 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," the company said in a statement.

The companies offered few specifics about their product integration plans. However, on a conference call discussing the acquisition, Adobe CEO Shantanu Narayen provided some hints.

"Clearly our customers would like us to do a lot more," he said. "Chief digital officers want to understand which video content is performing the best so they can feature it more prominently. Advertisers want to understand what click-through rates on their ads are in real-time, and Web developers have said they want to build intelligence so sites can recommend best products to increase conversion rates."

In the long term, it will let the company offer design tools that are integrated with optimization technologies from Omniture -- creating experiences that can morph in appearance in response to user behavior. One example might be the integration of Omniture's A/B testing capabilities with Adobe Flash, the platform used to create many rich media ads.

"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," according to the company's statement.

Under the deal's terms, Adobe will buy Omniture's stock for $21.50 per share. After closing, Omniture will become a business unit of Adobe. Omniture CEO Josh James will lead the unit.

In its 2008 annual report, Omniture stated it had over 5,100 customers in 91 countries. Those customers include America Online, British Telecom, Disney, eBay, and Ford Motor Company, among many others. It said its services captured data from approximately 3.7 trillion transactions.

In 2008, Omniture reported a net loss of $44.8 million on revenue of $295 million. It had 1,189 full-time employees in December 2008.

For the fiscal year ended Nov. 28, 2008, Adobe reported net income of $872 million on revenue of $3.6 billion. It had 7,335 employees as of Jan. 19, 2009, according to its annual report.

UPDATE: This story was updated to include comments from Adobe's CEO.

ClickZ Live Chicago Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!

ABOUT THE AUTHOR

Zachary Rodgers

Until March 2012, Zach Rodgers was managing editor of ClickZ's award-winning coverage of news and trends in digital marketing. He reported on the rise of web companies, data markets, ad technologies, and government Internet policy, among other subjects. 

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

IBM: Social Analytics - The Science Behind Social Media Marketing

IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.

Resources

Jobs

    • Recent Grads: Customer Service Representative
      Recent Grads: Customer Service Representative (Agora Financial) - BaltimoreAgora Financial, one of the nation's largest independent publishers...
    • Managing Editor
      Managing Editor (Common Sense Publishing) - BaltimoreWE’RE HIRING: WE NEED AN AMAZING EDITOR TO POLISH WORLD-CLASS CONTENT   The Palm...
    • Senior Paid Search & Advertising Manager
      Senior Paid Search & Advertising Manager (Smarty Had A Party) - St. LouisCompany Description: A warm, loving, [slightly wacky] startup, we view...