Adobe Systems has splashed out US$1.8billion on buying ad-measurement company Omniture as it attempts to diversify away from its declining core software business.
The deal surprised many analysts, and will create an unlikely pair.
It will, though, bring benefits which should make all sorts of sense to anyone involved in creating and optimising web content. Web designers who work on an Adobe platform will be able to integrate Omniture’s measurement services into the content that they create.
Omniture is a market-leader in web analytics and optimisation, and while Adobe is claiming the tie-up would “further its mission to revolutionise the way the world engages with ideas and information,” its benefits are far more likely to be appreciated at a technical level.
It will potentially allow designers, developers and online marketers to work with a single set of tools which will integrate their workflow, streamlining the creation of content and applications, while better optimisation should result in advertisers, publishers and e-tailers being able to improve their customers’ online shopping experiences.
Janney Montgomery Scott LLC analyst Sasa Zorovic said the purchase would expand Adobe’s offerings, especially for the enterprise market, which is Omniture’s customer base. Adobe usually sells to designers. Zorovic marked up its projected earnings for 2010 due to the acquisition, to $1.90 per share from $1.84 per share. Other analysts also boosted earnings per share estimates.
“At first blush we were somewhat surprised by the deal, but after further analysis we believe it could offer plenty of longer-term growth opportunities for (Adobe),” wrote Brad Reback, technology analyst with Oppenheimer & Co.
Adobe itself said the acquisition would make it “well positioned to deliver solutions that can transform the future of engaging experiences and e-commerce across all digital content, platforms and devices.”
“For designers, developers and online marketers, an integrated workflow – with optimisation capabilities embedded in the creation tools – will streamline the creation and delivery of relevant content and applications,” the company added.
Adobe’s press release announcing the deal claims: “The combination of the two companies will increase the value Adobe delivers to customers. For designers, developers and online marketers, an integrated workflow – with optimisation capabilities embedded in the creation tools – will streamline the creation and delivery of relevant content and applications.
“This optimisation will enable advertisers and advertising agencies, publishers, and e-tailers to realise greater ROI from their digital media investments and improve their end users’ experiences.”
RBC Capital Markets analyst Robert Breza said the potential for bringing together the two companies’ design and optimisation capabilities “should elevate the digital content experience to new levels.”
