SOFTWARE INDUSTRY NEWS |
Omniture acquired by Adobe |
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Adobe is bidding US$ 1.8 billion for all shares of Omniture, the fast-growing online marketing software company. Adobe will commence a tender offer to acquire all of the outstanding common stock of Omniture for $21.50 per share in cash, which represents a premium of 45 percent over Omniture's average closing price for the last 30 trading days. Adobe, the large and well-known maker of content creation tools such as Photoshop and Dreamweaver, is buying it’s way into the extremely fast-growing market of online marketing software. Omniture's revenues grew at a rate of 100% for each of the last three years to a total revenue figure of US$ 296 million in 2008, which made Omniture one of the 100 largest software companies in the world. Adobe, number 11 on the Software Top 100, posted total revenues of US$3.5 billion last year, but grew it’s software business only 10%. Although the product synergy between content creation tools (Adobe) and web analytics (Omniture) may be modest, Omniture is likely to profit from Adobe’s large customer base to which it can sell its services. Joining Adobe will provide global operational scale and the ability to more quickly penetrate new geographies and markets. The acquisition of Omniture will further diversify Adobe's business, adding a scalable SaaS platform that captures over a trillion transactions per quarter, an expansive partner ecosystem, and a recurring revenue model. As part of the expected integration of the two companies, Omniture will become a new business unit within Adobe. Omniture's CEO, Josh James, will join Adobe as senior vice president of the new business unit, reporting to Adobe's president and CEO, Shantanu Narayen. |

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