Adobe Systems Incorporated (Nasdaq:ADBE) and Omniture, Inc. (Nasdaq:OMTR) today announced the two companies have entered into a definitive agreement for Adobe to acquire Omniture in a transaction valued at approximately $1.8 billion on a fully diluted equity-value basis. Under the terms of the agreement, Adobe will commence a tender offer to acquire all of the outstanding common stock of Omniture for $21.50 per share in cash.
Adobe's acquisition of Omniture furthers its mission to revolutionize the way the world engages with ideas and information. By combining Adobe's content creation tools and ubiquitous clients with Omniture's Web analytics, measurement and optimization technologies, Adobe will be well positioned to deliver solutions that can transform the future of engaging experiences and e-commerce across all digital content platforms and devices.
The combination of the two companies will increase the value Adobe delivers to customers. For designers, developers and online marketers, an integrated workflow -- with optimization capabilities embedded in the creation tools -- will streamline the creation and delivery of relevant content and applications. This optimization will enable advertisers, advertising agencies, publishers and e-tailers to achieve greater ROI from their digital media investments and improve their end users' experiences.
"Adobe customers are looking to us for solutions to deliver engaging experiences and more effectively monetize their content and applications online," said Shantanu Narayen, president and chief executive officer of Adobe. "This is a game changer for both Adobe and our customers. We will enable advertisers, media companies and e-tailers to realize the full value of their digital assets."
"Omniture's mission has been to enable our customers to optimize every digital interaction," said Josh James, CEO of Omniture. "By joining forces with Adobe, we will accelerate our ability to deliver on that vision and together bring new innovation to the market that improves content engagement, advertising effectiveness and the overall user experience, which will drive more advertising dollars online."
Expanded Opportunities for Adobe and Omniture
This acquisition will significantly expand Adobe's addressable market and growth potential, broadening solutions Adobe provides to the rapidly growing Internet advertising, e-commerce and digital media markets.
The combination will also expand Adobe's offering of mission-critical solutions to the enterprise customer. Adding the capabilities of Omniture will further enhance Adobe's offerings and ability to appeal to online marketers, including chief marketing officers.
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.
For Omniture, joining Adobe will provide global operational scale and the ability to more quickly penetrate new geographies and markets, thereby accelerating its go-to-market strategy and growth potential.
Integration and Closing Details
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.
The completion of the transaction, which is subject to customary government approvals and the satisfaction of other customary conditions, is expected to close in the fourth quarter of Adobe's 2009 fiscal year.
The proposed offer represents a premium of 45 percent over Omniture's average closing price for the last 30 trading days through yesterday's close.
Adobe believes the acquisition will be accretive to Adobe's non-GAAP earnings in fiscal year 2010.
The companies will make information, including an FAQ and other details about the acquisition, available at http://www.adobe.com/aboutadobe/invrelations/adobeandomniture.html.