Date
18 October 2018
Adobe aims to boost its digital marketing business with the acquisition of Marketo. Photo: Reuters
Adobe aims to boost its digital marketing business with the acquisition of Marketo. Photo: Reuters

Adobe buys marketing software firm in US$4.75 bln deal

Adobe Systems has agreed to buy Marketo, a California-based marketing software firm, for US$4.75 billion, a move that signals its ambitions for cloud-based digital marketing.

Marketo’s business-to-business marketing applications will complement Adobe’s digital marketing business, which provides cloud-based tools to help create, manage and analyze advertising and marketing campaigns, Reuters reports, citing an announcement from the tech companies.

The seller is private-equity firm Vista Equity Partners Management.

Marketo, started in 2006 as an email marketing service, was taken private by Vista for US$1.8 billion in 2016.

After Vista acquired Marketo, it changed its management team, adding Steve Lucas, a former SAP executive, as the CEO in 2016, who helped revive sales growth at the company.

Marketo generated revenue of about US$321 million in 2017, according to credit ratings agency Moody’s.

The deal is expected to close in the fourth quarter of Adobe’s fiscal 2018. Lucas will join Adobe’s senior leadership team and continue to lead Marketo.

Earlier this year, Adobe agreed to buy cloud-based e-commerce services provider Magento Commerce from private-equity firm Permira in a deal worth US$1.68 billion.

– Contact us at [email protected]

RC

EJI Weekly Newsletter

Please click here to unsubscribe