Adobe has announced plans to acquire ad-tech company TubeMogul in a deal worth more than $500 million.
Founded in 2006, TubeMogul serves up a programmatic platform that lets agencies and brands “plan, buy, measure, and optimize” their video advertising spend across all platforms. The company went public on the NASDAQ back in 2014, but its shares have plummeted from its $22 peak in December 2014 to less than $8 this week, which was roughly the same as its IPO price.
As an incentive to get shareholders to approve the deal, Adobe is offering $14 per share, a price that TubeMogul’s stock hasn’t seen since April this year. The total value of the deal is around $540 million, net of cash and debt.
In terms of how Adobe will use TubeMogul, well, it says that the acquisition will help it transform Adobe Marketing Cloud into the “first end-to-end independent advertising and data management solution that spans TV and digital formats,” according to a statement.
“Whether it’s episodic TV, indie films, or Hollywood blockbusters, video consumption is exploding across every device, and brands are following those eyeballs,” explained Brad Rencher, executive vice president and general manager of digital marketing at Adobe. “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.”
The transaction is expected to close during the first quarter of Adobe’s 2017 fiscal year, with TubeMogul CEO Brett Wilson continuing to lead the same team under Adobe’s Digital Marketing umbrella.
Today’s news comes two months after Adobe reported a record $1.46 billion in revenue in its Q3 earnings. It also comes hot on the heels of a major refresh of its Creative Cloud suite of apps, with a particular focus on 3D and virtual reality (VR).
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