Adobe just acquired a marketing automation company
Adobe (ADBE) has agreed to buy Marketo, a marketing automation firm, for $4.75 billion. This is the enterprise software company’s largest acquisition ever. The deal suggests the company hopes to become a one-stop-shop for marketers. Vista Equity Partners made a pretty good profit out of the deal, as it purchased Marketo for only $1.8 billion back in 2016. The deal makes sense for Adobe after the purchase of Magento, a commerce technology firm, for $1.6 billion in May 2018.
Adobe has been on an acquiring spree. The company made its first big bet on marketing when it purchased Omniture for $1.8 billion in 2009. Adobe then acquired Day Software, an enterprise content management software company, for $240 million in 2010. In 2016, it acquired TubeMogul, an enterprise software company, for $540 million.
Marketo acquisition makes sense for Adobe
Marketo’s acquisition will likely further boost Adobe’s clout with B2B (business-to-business) brands, which represent most of Marketo’s customer base. Microsoft (MSFT) could also end up winning from this deal given the growing partnership between the software giant and Adobe.
Adobe is known for products like Adobe Reader and Photoshop. The company’s Experience Cloud segment seems to be up and coming. In the fiscal 2018 third quarter (quarter ended August 2018), the segment grew by 21% year-over-year (or YoY) to reach $614 million. The segment includes the company’s marketing technology and data and analytics products.