Adobe to buy Marketo for $4.75 billion in marketing push

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Adobe CEO Shantanu Narayen at the Adobe Summit on Tuesday, March 27, 2018, in Las Vegas
Adobe CEO Shantanu Narayen at the Adobe Summit on Tuesday, March 27, 2018, in Las Vegas Credit: Adobe

Adobe Systems agreed to acquire software maker Marketo Inc. for $4.75 billion, bolstering its marketing tools in a bid to compete against Salesforce.com Inc. and Oracle Corp. in a fast-growing business.

The deal, which would be Adobe's largest acquisition ever, is expected to close during the fourth quarter of fiscal 2018, the San Jose, California-based company said Thursday in a statement.

Adobe, the maker of image-editing tool Photoshop, has sought to develop a software suite that includes advertising, analytics and e-commerce programs. Marketo, owned by Vista Equity Partners, provides one of the last pieces of that puzzle. Adobe purchased Magento Commerce for $1.7 billion in June to enter the market for e-commerce.

Vista bought San Mateo, California-based Marketo in 2016 for $1.8 billion. The firm sells marketing software that companies use to identify and reach new customers through email, text messages, social media and other channels, according to its website. It also offers analytical services. Marketo Chief Executive Officer Steve Lucas will join Adobe's senior leadership, the companies said.

Adobe's shares were little changed in extended trading after closing at $266.34 in New York. The stock has jumped 52 percent this year.

-- Bloomberg News

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