Adobe announced it has entered into a definitive agreement to acquire software company Marketo for $4.75 billion, subject to adjustments. This move could have implications for such competitors as Salesforce.
With nearly 5,000 customers, Marketo combines planning, engagement and measurement capabilities into an integrated B2B marketing platform. The company's technology, combined with Adobe Experience Cloud analytics, content, personalization, advertising and commerce capabilities, will allow B2B firms to develop, manage and execute marketing engagement at scale.
“The imperative for marketers across all industries is a laser focus on providing relevant, personalized and engaging experiences,” said Brad Rencher, executive vice president and general manager of digital experience at Adobe, in a press release. “The acquisition of Marketo widens Adobe’s lead in customer experience across B2C and B2B, and puts Adobe Experience Cloud at the heart of all marketing.”
Headquartered in San Mateo, CA, Marketo has offices around the globe.
“Adobe and Marketo both share an unwavering belief in the power of content and data to drive business results,” said Steve Lucas, CEO of Marketo. “Marketo delivers the leading B2B marketing engagement platform for the modern marketer, and there is no better home for Marketo to continue to rapidly innovate than Adobe.”
The transaction is expected to close during the fourth quarter of Adobe’s 2018 fiscal year, and is subject to regulatory approval and customary closing conditions. Until then, each company will operate independently.
The transaction, which is expected to close during Q4 of Adobe’s 2018 fiscal year, will be “subject to regulatory approval and customary closing conditions.” Until the transaction closes, both companies will continue to work independently. Once the acquisition is complete, though, Lucas will join the Adobe senior leadership team, continue to lead Marketo as part of Adobe’s Digital Experience business and report to Rencher.
This is the second big acquisition for Adobe this year. In May, it entered into a definitive agreement to acquire Magento Commerce for $1.68 billion. The addition of the Magento Commerce Cloud will enable commerce to seamlessly integrate into the Adobe Experience Cloud, and deliver one platform that serves both B2B and B2C customers around the world.