Adobe to buy Omniture for $1.8 billion

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San Jose, Calif.—Multimedia software company Adobe Systems is buying online marketing and Web analytics company Omniture Inc. for $1.8 billion.

Adobe, the creator of Acrobat, Photoshop and Flash software, said the acquisition is intended to make it more competitive in online commerce. It said that blending Omniture's analytics tools with its own Creative Suite will provide marketers, agencies, publishers and e-commerce companies with an “integrated work flow” to measure the impact of the content created by Adobe's various tools.

Omniture will become a division of Adobe. Omniture's CEO, Josh James, will join Adobe as the unit's senior VP, reporting to Adobe CEO Shantanu Narayen.

The deal, if approved by federal regulators, is expected to close in the fourth quarter.

Omniture, the largest provider of Web analytics, has annual revenue of about $300 million. SiteCatalyst is Omniture's flagship Web analytics application. Another Omniture product, Test&Target, offers behavioral targeting.

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