Adobe Systems Inc. (NASDAQ: ADBE) on Thursday agreed to acquire marketing software firm Marketo from Vista Equity Partners for USD 4.75 Billion, its largest acquisition ever.
San Mateo, Calif.-based Marketo helps brands track their customers’ actions online, from getting an email to purchasing a product, providing them with information they can use to serve more personalized promotions.
“Adding Marketo’s engagement platform to Adobe Experience Cloud will enable Adobe to offer an unrivaled set of solutions for delivering transformative customer experiences across industries and companies of all sizes,” Adobe said in a statement.
The deal is expected to add scale to Adobe’s existing marketing-technology capabilities. It also will bolster the company’s clout with business-to-business brands, which make up the bulk of Marketo’s customer base.
Marketo was founded in 2006, went public in 2013 and was acquired by Vista for USD 1.8 Billion in 2016. Marketo’s customer list includes Canon, Charles Schwab, Eventbrite, GE, Microsoft and Hyundai. Marketo’s Chief Executive Officer, Steve Lucas, will continue to lead the company inside Adobe’s Digital Experience group and will join Adobe’s senior leadership team.
Lucas said in a blogpost, “The combination of Marketo and Adobe’s Experience Cloud will form the definitive system of engagement for B2C and B2B enterprise marketers. Marketo’s exceptional lead management, account-level data, and multi-channel marketing capabilities will combine with Adobe’s rich behavioral dataset to create the most advanced, unified view of the customer at both an individual and account level.”
Adobe stock is up 78% in the past year. The majority of Adobe’s revenue comes from its Digital Media business, which includes the Creative Cloud software. Marketing software is included in the Digital Experience business, which generated USD 614 Million in revenue in the most recent quarter, with 21% growth year over year.