Adobe snaps up Omniture for US$1.8bn

Adobe Systems is set to splash out US$1.8bn (£1.1bn) on web analytics firm Omniture, in a move which could help developers create more highly optimised web content.

Adobe announced yesterday that it will pay US$21.50 (£13) per share in cash for Omniture, representing the firm's second largest acquisition since paying US$3.4bn (£2bn) for Macromedia in 2005.

Shantanu Narayen, president and chief executive at Adobe, claimed that Omniture's web measurement and optimisation capabilities will enable Adobe to increase the value it offers to customers.

Content creation tools could be offered with web optimisation capabilities built-in, for example, enabling e-commerce firms and publishers to improve return on investment and enhance the user experience.

"Adobe customers are looking to us for solutions to deliver engaging experiences, and more effectively monetise their content and applications online," said Narayen.

"This is a game changer for both Adobe and our customers. We will enable advertisers, media companies and e-retailers to realise the full value of their digital assets."

Perhaps more importantly for Adobe, which announced poor second-quarter results yesterday, the deal will also significantly expand its addressable market and give it a healthy new revenue stream.

Under the terms of the deal, which is expected to close in the fourth quarter of 2009, Omniture will become a new business unit within Adobe. Omniture chief executive Josh James will become senior vice president at Adobe.