Adobe agrees to acquire Omniture for $1.8 billion

Adobe Systems Inc. (Adobe), a global provider of creative and multimedia software and well known for its PDF technology and software products such as Acrobat, Flash, Photoshop, Dreamweaver etc., has agreed yesterday to acquire Omniture Inc., an online marketing and web analytics company, for approximately $1.8 billion, to deliver comprehensive solutions for creation, delivery and optimisation of software products. 

Under the terms, Adobe will acquire all of the outstanding common shares of Omniture for $21.50 per share, commanding a 24 per cent premium over Tuesday's closing price on Nasdaq. Further to the takeover news, Omniture shares surged over 26 per cent to close at $21.88 yesterday.

The offer price represents a premium of 45 per cent over Omniture's 30-day average closing price.

Utah-based Omniture is a leading source of online business optimisation software. Through its Online Marketing Suite, it provides business optimisation strategy for marketers by capturing and analysing digital transactions from web sites and other online channels such as mobile, video, social media as well as off-line business initiatives for faster and cost effective solutions. The company employs around 1,000 people and registered revenue of $296 million in 2008.

Omniture reported revenue of $88 million in the second quarter, 22 per cent higher than last year, with a net loss of 4.9 million compared to a loss of 6.5 million last year, primarily on account of acquisition related adjustments, amortization of intangible assets etc.

The combination of the two companies is expected to increase the value Adobe delivers to its customers including developers, designers, marketers, advertisers, publishers etc. to achieve greater returns from their digital media investments.