San Jose, CA (USA), November 2016 - Adobe has entered into a definitive agreement to acquire TubeMogul for approximately $540 million net in debt and cash. Under the terms of the agreement, Adobe will commence a cash tender offer to acquire all of the outstanding common stock of TubeMogul for $14 per share. TubeMogul is a leader in video advertizing, with a single platform that enables brands and agencies to plan and buy video advertizing across desktops, mobile, streaming devices, and TVs.
Adobe Marketing Cloud is a comprehensive and integrated solution for delivering exceptional digital experiences. Adobe’s acquisition of TubeMogul will create the first end-to-end independent advertizing and data-management solution that spans TV and digital formats, simplifying what has been a complex and fragmented process for the world’s biggest brands.
Video consumption is exploding across all devices, and video advertizing is the fastest-growing advertizing category. Adobe is a leader in video-content creation and delivery, with its Premiere Pro CC and Primetime solutions. Adobe’s acquisition of TubeMogul will enable brands to capitalize on the meteoric shift to online video.
The acquisition of TubeMogul strengthens Adobe’s leadership in digital marketing and advertising technology. Building upon its expertise in search, display, and social advertizing planning and delivery with Adobe Media Optimizer, the addition of TubeMogul will enable Adobe’s customers to maximize their video-advertizing investments across desktop, mobile, streaming devices, and TV. TubeMogul’s video advertizing platform, combined with Adobe Marketing Cloud, will give customers access to first-party data and measurement capabilities from Adobe Audience Manager (Adobe’s data-management platform) and Adobe Analytics, respectively.
"Whether it’s episodic TV, indie films, or Hollywood blockbusters, video consumption is exploding across every device, and brands are following those eyeballs," said Brad Rencher, executive vice president and general manager, digital marketing, Adobe. "With the acquisition of TubeMogul, Adobe will give customers a ‘one-stop shop’ for video advertizing, providing even more strategic value for our Adobe Marketing Cloud customers."
TubeMogul is a video demand-side platform (DSP) leader according to Forrester Research in its Q4 2015 Forrester Wave™ Video Advertizing Demand Side Platform report. Adobe and TubeMogul share a long list of joint customers that will benefit from the integration of TubeMogul into Marketing Cloud solutions. These include Allstate, Johnson & Johnson, Kraft, Liberty Mutual, L’Oréal, Nickelodeon, and Southwest Airlines.
"Adobe and TubeMogul share a similar culture and vision for the future of advertizing," said Brett Wilson, CEO and co-founder, TubeMogul. "The combination of Adobe Marketing Cloud with TubeMogul’s software creates a uniquely comprehensive platform that will help marketers always know what’s working - and act on it. We’re thrilled to call Adobe home and believe this will be a great move for our clients, team, and shareholders."
The transaction, which is expected to close during the first quarter of Adobe’s 2017 fiscal year, is subject to customary closing conditions. The potential financial impact to Adobe of this transaction is not reflected in financial targets previously provided by the company. Until the transaction closes, each company will continue to operate independently. Assuming the completion of the transaction, Adobe believes the acquisition of TubeMogul will be neutral to Adobe’s non-GAAP earnings in fiscal year 2017. Due to the absence at this time of certain acquisition-related cost estimates and purchase-price accounting, Adobe is currently unable to provide an estimated impact on future GAAP earnings.
TubeMogul CEO Brett Wilson will continue to lead the TubeMogul team as part of Adobe’s digital-marketing business.