In a bid to become a complementary powerhouse instead of competing products and widen customer experience leadership, software developer Adobe has acquired Marketo, the market-leading cloud platform for B2B marketing engagement. The largest acquisition in the San Jose-based software giant’s history is reportedly worth $4.75 billion. The acquisition is expected to close in Q4 2018.
Founded in 2006 the CA-based Marketo’s CEO Steve Lucas will align with the Adobe's senior leadership team.
"Adobe and Marketo both share an unwavering belief in the power of content and data to drive business results,” Steve Lucas said in the release. “Marketo delivers the leading B2B marketing engagement platform for the modern marketer, and there is no better home for Marketo to continue to rapidly innovate than Adobe," he added.
With more than 15,000 employees worldwide, Adobe’s CEO Shantanu Narayen said he believes “the combination of Adobe Experience Cloud’s analytics, personalization, commerce competencies and content solutions with Marketo’s lead management, account-based marketing and attribution technology will help adobe to create a foothold from mid-market to enterprise space.
Marketo was purchased by Vista Equity in 2016 for only $1.79 billion while Adobe paid $4.75 billion. It is speculated by several reports that leak of the deal was carried out to entice Adobe’s rival Salesforce, a customer relationship management platform, a week prior to the bidding session. Earlier, Adobe lost out to purchase Demandware, which was later acquired by Salesforce. With this war between the two gaining momentum, it is reported that Salesforce is now set to acquire Sitecore, Adobe’s biggest competitor in the content management system space.
Earlier this year, the tech titan acquired tier-1 e-commerce platform, Magneto for $1.68 billion which was 10 times the annual revenue of the firm with the strategy to mark its presence across thousands of Live Commerce websites and enter the mid-market ecosystem.