The move was announced Tuesday, the same day Adobe reported lower revenue and profits in its fiscal third quarter.
Adobe on Tuesday said it will acquire the Web analytics firm, Omniture Inc., for $1.8 bilion in cash. The plan is to combine the two companies' products to create tools for building Web sites and making them more effective as advertising venues.
Adobe announced the acquisition the same day it reported lower revenue and profits in its fiscal third quarter. The company sells software for building Web sites, creating digital documents, and editing photos. Omniture offers tools for gathering data from sites and then analyzing it to improve the effectiveness of marketing, advertising, and other business processes.
Under terms of the agreement, Adobe would pay $21.50 per share in cash for Omniture common stock, representing a 24% premium over the latter company's Tuesday closing stock price. The transaction is expected to be completed during Adobe's fiscal fourth quarter, which ends in November.
Adobe plans to run Omniture as a separate unit run by Josh James, Omniture's current chief executive. In buying the Web analytics company, Adobe would acquire Omniture's more than 5,000 customers worldwide, including Fortune 500 companies and major retailers and e-commerce sites. For its fiscal year ending Dec. 31, 2008, Omniture, based in Orem, Utah, had $295.6 million in revenue.
"Adobe customers are looking to us for solutions to deliver engaging experiences and more effectively monetize their content and applications online," Shantanu Narayen, president and chief executive of Adobe, said in a statement. "This is a game changer for both Adobe and our customers. We will enable advertisers, media companies, and e-tailers to realize the full value of their digital assets."
Meanwhile, Adobe reported Tuesday that its net income fell to $136 million, or 26 cents a share, in the fiscal third quarter from $191.6 million, or 35 cents a share, during the same period a year ago. Revenue for the quarter ended Aug. 28 dropped 21% to $697.5 million from $887.3 million a year ago.
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