Adobe has just announced that it will be acquiring brand advertiser TubeMogul for around $540m net of debt and cash. As part of the terms set forth in the agreement, Adobe will be buying the company’s outstanding common stock at $14 per share.
Adobe acquires TubeMogul for $540m
The multinational computer software company already has a few marketing tech and data firms under its belt, but until now it hadn’t focussed on mobile video. That changes with the acquisition of TubeMogul, which provides video ads through a single platform across mobile and other formats.
Brad Rencher, Executive VP and GM of Adobe, said:
“Video is the fastest-growing segment in advertising, and it isn’t one we address today. This extends our capabilities.”
The company plans to integrate TubeMogul as part of its Adobe Marketing Cloud, which offers comprehensive and integrated digital advertising solutions. The addition significantly bolsters Adobe’s advertising offers. In addition, the move strengthens the company’s lead in digital marketing and ad technology.
“Whether it’s episodic TV, indie films or Hollywood blockbusters, video consumption is exploding across every device and brands are following those eyeballs. With the acquisition of TubeMogul, Adobe will give customers a ‘one-stop shop’ for video advertising, providing even more strategic value for our Adobe Marketing Cloud customers.”
In addition, Adobe sees some solid growth perspective for its automated TV ad buying with the help of TubeMogul. Indeed, companies such as Time Warner, Comcast, Fox are already tapping Adobe’s Primetime technology to run digital video streaming and TV initiatives.
Brett Wilson, CEO and Co-founder, TubeMogul, adds:
“Adobe and TubeMogul share a similar culture and vision for the future of advertising. 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.”
The transaction is expected to close during Q1 2017 and is subject to some closing conditions.