Adobe snaps up Omniture in $1.8bn analytics acquisition

NEWS

Adobe said on Tuesday that it has reached a deal to acquire web analytics firm Omniture for $1.8bn, or $21.50 per share.

That represents a 45 per cent premium on Omniture's average closing price for the last 30 days, according to Adobe. Omniture, which was started in 1996, has about 1,200 employees and took in just under $300m in the 12 months ending 31 December.

Adobe CEO Shantanu Narayen called the move a "game changer" for the company.

Adobe buys analytics company Omniture for $1.8bn (screenshot: Bethan Jones/silicon.com)

The two companies said the deal is expected to close during Adobe's fourth quarter and is subject to government approvals. Omniture will become a new unit within Adobe, with Omniture CEO Josh James continuing to lead the business as an Adobe senior vice president. Adobe said the deal should add to earnings in fiscal 2010.

In an interview, Adobe senior vice president Paul Weiskopf said the deal will allow Adobe to merge the "art" of developing and delivering content with the "science" of measuring the impact of that content.

"Today that's a real pain point for customers," Weiskopf said. "We have the opportunity to integrate what is today a pretty disparate and not tightly integrated set of workflows."

The deal is the company's largest since its $3bn-plus acquisition of Macromedia, announced in April 2005.

Weiskopf declined to discuss how long the deal had been in the works or whether there will be any job cuts once the deal goes through.