Adobe Targets B2C, B2B Market With Acquisition Of Marketo

Adobe Targets B2C, B2B Market With Acquisition Of Marketo
September 21, 2018

 

Adobe Systems Incorporated (NASDAQ: ADBE), one of the world’s biggest tech companies and a pioneer in computerized document management, is getting ready to play a greater part in enterprise digital transformation by moving forward with its intended buyout of Marketo. The acquisition to be completed for US$4.75 billion is seen as an effort to challenge Oracle, Microsoft, and Salesforce in the competitive marketing cloud sector.

 

Adobe’s gargantuan expansion plans

The software company will gain control of the marketing cloud platform from Vista Equity Partners; a firm focused on acquiring tech companies. With this acquisition, Adobe, which posted FY17 revenue of US$7.3 billion and a labor force of more than 19,000, will gain access to Marketo’s marketing know-how of over 500 partners and more than 65,000 members.

If the buyout goes according to plan, Marketo will be Adobe’s second key takeover so far in 2018, following its May acquisition of the e-commerce platform creator Magento for US$1.68 billion. In a blog post, Steve Lucas, Marketo chief executive, wrote Thursday that the combination of Adobe and Marketo would put client experience and involvement at the core of digital transformation.

Lucas wrote that Adobe and Marketo would be an important force to be reckoned with in the business-to-consumer (B2C) and business-to-business (B2B) enterprise market.

He further stated that: “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. The result will be an unprecedented level of marketing engagement, automation, and attribution power.”

The acquisition is anticipated to be completed before November 2018 when the company’s 4Q18 ends. Once the acquisition is finalized, Lucas will begin reporting to Brad Rencher, general manager and executive vice president for digital experience at Adobe.

Speaking about the requirement of marketers, Brad Rencher said: “The imperative for marketers across all industries is a laser focus on providing relevant, personalized and engaging experiences.”

Furthermore, Rencher, through a ready-made statement, said marketers are exploring ways to offer appropriate, privy, and enthralling experiences to customers.

Rencher said: “The acquisition of Marketo widens Adobe’s lead in customer experience across B2C and B2B and puts Adobe Experience Cloud at the heart of all marketing.”

Regarding Marketo’s platform, Rencher opined that it is “feature-rich and cloud-native,” offering “significant opportunities” for incorporation across Adobe Experience Cloud.

Adobe explained that it would try to capitalize on the Marketo Engagement Platform, which is a cloud-native offering for business-to-business (B2B) marketing strategy creation, and engagement.

From a technology context, the buyout aims to integrate Adobe Experience Cloud analytics, personalization, data content, business, and advertising offerings with Marketo’s potential clientele management and account-based marketing techniques.

The final result would be the creation of a packaged solution capable of offering B2B companies the capability to create, administer and execute marketing engagements.

To sum up, Steve Lucas said “Adobe and Marketo both share an unwavering belief in the power of content and data to drive business results. 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.”

Adobe also said that the acquisition would enable Marketo to attain Adobe’s global operation scale, reach new verticals and geographical locations, and access to a huge enterprise customer base. The acquisition is expected to keep the stock price bullish in the short-term.

Historically, the price chart indicates that the stock is moving comfortably above its 50-day moving average and the Chaikin money flow indicator is in the positive region. Therefore, we are expecting the stock to move up in the short-term.

adb - technical analysis - 21th September 2018

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.

 

Sammy

Sammy

Sammy is our forex expert, with over 20 years experience in the financial sector, she will be keeping you up to date with the ups and downs of currencies around the world


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