Adobe To Acquire TubeMogul
- by Radu Cotarcea
Adobe announced on November 10 that it is set to acquire the software for brand advertising developer TubeMogul.
According to Adobe’s announcement, the company has entered into a definitive agreement to acquire TubeMogul for approximately USD 540 million net of debt and cash. Under the terms of the agreement, Adobe will commence a cash tender offer to acquire all of the outstanding common stock of TubeMogul for USD 14 per share.
The target company is a leader in video advertising, with a single platform that enables brands and agencies to plan and buy video advertising across desktops, mobile, streaming devices, and TVs. TubeMogul was incorporated in 2007 and is based in Emeryville, California, and has operations in Kyiv, London, New York, Paris, Sao Paulo, Shanghai, Singapore, Sydney, Tokyo, Toronto, and offices across the United States. Adobe’s acquisition of TubeMogul will "create the first end-to-end independent advertising and data management solution that spans TV and digital formats, simplifying what has been a complex and fragmented process for the world’s biggest brands."
Adobe explained that the acquisition "further strengthens Adobe’s leadership in digital marketing and advertising technology," by building upon its expertise in search, display, and social advertising planning and delivery with Adobe Media Optimizer with the addition of TubeMogul, which will enable Adobe’s customers to maximize their video advertising investments across desktop, mobile, streaming devices, and TV.
Brad Rencher, Executive Vice President and General Manager in Digital Marketing at Adobe, commented: "Whether it’s episodic TV, indie films or Hollywood blockbusters, video consumption is exploding across every device and brands are following those eyeballs. 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."
Brett Wilson, CEO and Co-Founder of TubeMogul, added: "Adobe and TubeMogul share a similar culture and vision for the future of advertising. The combination of Adobe Marketing Cloud with TubeMogul’s software creates a uniquely comprehensive platform that will help marketers always know what’s working — and act on it. We’re thrilled to call Adobe home and believe this will be a great move for our clients, team and shareholders.”
Adobe informed that the transaction is expected to close during the first quarter of Adobe’s 2017 fiscal year and is subject to customary closing conditions.