Adobe has announced it is to acquire video demand-side platform TubeMogul for $540 million.
TubeMogul supplies a single platform that enables brands and agencies to plan and buy video advertising across desktop, mobile, streaming devices and TV.
The deal will see what Adobe called the creation of an “end-to-end independent advertising and data management solution” that it hopes will simplify a complex and fragmented process for brands.
Under the terms of the agreement, Adobe will commence a cash tender offer to acquire all of the outstanding common stock of TubeMogul for $14 per share.
“Adobe and TubeMogul share a similar culture and vision for the future of advertising,” said Brett Wilson, CEO and co-founder, TubeMogul.
“The combination of Adobe Marketing Cloud with TubeMogul’s software creates a uniquely comprehensive platform that will help marketers always know what’s working – and act on it. We’re thrilled to call Adobe home and believe this will be a great move for our clients, team and shareholders.”
Commenting on the deal, Julie Langley, partner at global M&A advisers, Results International, said: “The public markets have been an inhospitable place for adtech for the past couple of years.
“TubeMogul’s shares were down 44% since the start of the year immediately before this announcement. Adobe has probably seen this as a good opportunity to buy a substantial video adtech asset.
“Equally for TubeMogul shareholders it’s a chance to get what in the current climate must look like a good return – they IPO’d at $7 per share and the adobe offer is $13.95.”
Langley said the acquisition is also further evidence of the convergence between and marketing and ad technology, coming hot on the heels of Salesforce’s $700m acquisition of Krux.
“The marketing tech vendors are moving ever further into ad tech and media buying,” she said.
The transaction, which is expected to close during the first quarter of Adobe’s 2017 fiscal year, is subject to customary closing conditions.
