Adobe Systems Inc., has recently announced that it is buying Marketo, a marketing software selling firm, for USD 4.75 billion. Reportedly, the acquisition marks Adobe’s largest deal ever, while elevating it to compete directly with its competitors including Salesforce, HubSpot, SAP, and Oracle.
According to reports, Marketo’s acquisition with over 5,000 customers is expected to widen Adobe’s portfolio and position in B2B marketing services. The deal moreover gives Adobe a greater opportunity to increase its revenue streams across its Digital Experience business, which delivered USD 614 million in recent quarter.
Sources cite that Vista is known for its strategic buying and flipping of companies and the recent Adobe deal is no exception. If industry experts are to be believed, the acquisition move was a profitable return for Vista Equity Partners, which bought Marketo two years back for USD 1.8 billion in an all cash deal.
For the record, the marketing software selling company Marketo was established in the year 2006, went public in 2013, and was acquired by Vista Equity in the year 2016.
Credible reports claim that the deal is likely to help Adobe with accessing Marketo’s repository of content assets, in turn aiding the company in acquiring more customers via improve campaign creation and targeted & account-based advertising.
Shantanu Narayen, Adobe’s CEO, was quoted stating that the company is poised to be a leading platform for all marketers as the acquisition deal will be combining the Adobe Experience Cloud’s analytics, content, and personalized solutions with Marketo’s account based marketing, lead management, and attribution technology.
It has been reported that the transaction, slated to closed by the fourth quarter, will be subject to regulatory approval and customary closing terms. Steve Lucas, CEO of Marketo will be joining Adobe’s senior leadership team as a part of Adobe’s Digital Experience business.