Adobe Systems Is Nearing $5 Billion Deal for Marketo
Adobe agreed to acquire software maker Marketo for $4.75 billion, according to Bloomberg. The deal, which would be Adobe’s largest ever, is expected to close during the fourth quarter of fiscal 2018, the San Jose, California-based company said in a statement.
Adobe has sought to develop a software suite that includes advertising, analytics and e-commerce programs. They have purchased Magento for $1.7 billion in June to enter the market for e-commerce. Marketo, owned by Vista Equity Partners, provides one of the last pieces of that puzzle. “Our ability to get a greater share of the wallet we think is enhanced with this acquisition,” Adobe CEO Shantanu Narayen said.
Marketo sells marketing software that companies use to identify and reach new customers through email, text messages, social media and other channels. It also offers analytical services, and is particularly strong in helping businesses market to other businesses. Vista bought Marketo in 2016 for $1.8 billion. Adobe will gain almost 5,000 customers through the acquisition, and Marketo CEO Steve Lucas will join Adobe’s senior leadership, the companies said.