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Adobe buys analytics firm for $1.8b

16 Sep 2009
00:00
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Software company Adobe Systems will acquire web analytics firm Omniture for $1.8 billion, the companies announced Tuesday.

Adobe said the deal would enable the two to combine Adobe’s content creation tools with Omniture’s measurement tools to support digital content and e-commerce “across all digital content, platforms and devices.”

But investors were skeptical about the deal, as analysts pointed to Omniture’s loss of market share to Google’s free analytics tools. Adobe’s stock fell 4.15% to $34.14 in after-hours trading.

Earlier its stock rose 1.22% after it posted a 29% fall in quarterly profit, slightly above expectations. Sales fell 21% to $697.5 million in the quarter, and it expects revenue of between $690 million and $740 million for the current quarter.

CEO Shantanu Narayen said customers were looking for solutions which helped them monetize their content and applications online. The Omniture deal would “enable advertisers, media companies and e-tailers to realize the full value of their digital assets,” he said.

Trip Chowdhry, an analyst with Global Equities Research, told the NYTimes.com the deal was a timely one, but Adobe had overpaid for the company’s business in the face of competition from Google.

He said $12 to $13 per share, rather than the $21.50 offered, would have been a fair value for the company.

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