Adobe Systems To Acquire Omniture For $1.8B

By Mike Cherney

Law360, New York (September 15, 2009) -- Business software giant Adobe Systems Inc. will acquire Omniture Inc. for $1.8 billion, buying all the Web analytics firm's outstanding stock for $21.50 a share, the companies announced Tuesday.

The deal, which calls for Omniture to become a new business unit within Adobe, is expected to be completed in the fourth quarter of Adobe's 2009 fiscal year, the company said. The merger is subject to customary government approvals and other conditions, the company said.

Josh James, the CEO of Omniture, will join Adobe as a senior vice president of the new business unit. The proposed offer also represents a premium of 45 percent over Omniture's average closing price for the last 30 trading days through the Sept. 14 close, the companies said.

The acquisition is expected to diversify Adobe's business and allow Omniture to do business on a more global scale and more quickly penetrate new markets, the companies said.

"Adobe customers are looking to us for solutions to deliver engaging experiences and more effectively monetize their content and applications online," Shantanu Narayen, president and CEO of Adobe, said in a statement. "This is a game changer for both Adobe and our customers. We will enable advertisers, media companies and e-tailers to realize the full value of their digital assets."

Adobe filed an 8-K form with the Securities and Exchange Commission Tuesday announcing the deal. Snowbird Acquisition Corp., a wholly owned subsidiary of Adobe, will make the formal tender offer and file the appropriate paperwork with the SEC as soon as possible, the company said.

"Omniture’s mission has been to enable our customers to optimize every digital interaction," James said in a statement.

"By joining forces with Adobe, we will accelerate our ability to deliver on that vision and together bring new innovation to the market that improves content engagement, advertising effectiveness and the overall user experience, which will drive more advertising dollars online," he said.

Also Tuesday, Adobe reported that its third-quarter revenue for fiscal year 2009 was down to $697.5 million compared to $887.3 million in the third quarter of last fiscal year. In the second quarter of fiscal year 2009 Adobe's revenues were $704.7 million.

"We are pleased with the solid revenue and earnings results we were able to deliver in Q3," Narayen said in a statement. "Our focus remains on driving growth in our core business, as well as investing in promising new opportunities."

Adobe, which has its headquarters in San Jose, Calif., has about 7,500 employees and operates in 40 countries, it said. Founded in 1982, its revenues were $3.58 billion in fiscal year 2008.

Omniture has more than 5,000 customers for its Web analytics services, including eBay Inc., AOL LLC, Wal-Mart Stores Inc., Gannett Co. Inc. and Microsoft Corp. Founded in 1996 and based in Orem, Utah, the company has 1,200 employees and operates in 20 different countries.

Omniture's revenues for fiscal year 2008 neared $300 million.

Representatives for Omniture and Adobe did not return phone calls Tuesday, and any lawyers working on the deal could not be identified by the time of publication.