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Adobe in talks to buy Marketo
Posted on Thursday, 13 September 2018 10:58
Adobe Systems is in discussions to acquire marketing software company Marketo, sources close to the matter told Reuters. Unnamed people, who did not wish to be identified due to the confidential nature of the private negotiations, have stressed however that no deal is certain. Neither company responded to questions from Reuters on the matter. A deal would add to Adobe’s recent acquisitions; it bought e-commerce services provider Magneto Commerce in May for USD 1.68 million. Should the potential buyer purchase Marketo, sources have told Reuters that the company would pay a lot more, but declined to give an estimation of the deal’s potential value. Adobe’s previous acquisitions include Autodesk, which at USD 9.08 billion, was the company’s largest deal of 2015, according to Zephyr, the M&A database published by Bureau van Dijk. The company has been pursuing investments in order to expand its Experience Cloud business, Reuters observed. An unnamed competitor of Adobe told Which-50: “The heritage of Adobe Campaign is on-premise and the cloud migration hasn’t gone particularly well. Whereas Marketo is a cloud solution and much better than the one they’ve got today.” The deal would increase the company’s cloud-based software products and establish it on the market alongside industry giants such as Microsoft and Oracle, Reuters notes. Furthermore, Adobe would benefit from Marketo’s marketing applications, which operate on a business-to-business basis and strengthen its own marketing division as a result, Reuters states. Zephyr shows that there have been 6,347 deals targeting data processing, hosting and related services providers announced since the beginning of 2018. Broadcom, in the largest of these, agreed to buy information technology and infrastructure management software provider CA for USD 18.40 billion. Formed in 2006, Marketo, according to its website, is a leader in marketing automation, specialising in email marketing, lead management, consumer marketing, and mobile marketing, among others. The company posted revenue of USD 321.00 million in 2017, according to Moody’s Investors Service, as cited by Reuters. © Zephus Ltd