Adobe announced that it has signed a definitive agreement to purchase Marketo for $4.75 billion. The acquisition, which was rumored to be in the works last week, will be used to strengthen Adobe’s Experience Cloud with Marketo’s engagement platform.
By combining Adobe’s analytics, content, personalization and other tools with Marketo’s lead management and ABM technology, the companies aim to better position B2B marketers to drive engagement at scale.
The acquisition is expected to close during the fourth quarter of the 2018 fiscal year, and Marketo will continue to act independently until the deal closes. As part of the agreement, Marketo CEO Steve Lucas will join Adobe’s senior leadership team. The transaction amount is subject to purchase price adjustments, according to the press release.
“Adobe and Marketo both share an unwavering belief in the power of content and data to drive business results,” said Lucas in a statement. “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.”
Industry Leaders Sound Off On Marketo Acquisition
B2B marketing experts, such as Jon Miller, CEO of Engagio and Co-Founder of Marketo, and Julia Stead, VP of Marketing at Invoca, shared their thoughts on the acquisition with Demand Gen Report.
“This is an amazing outcome for Vista and Marketo employees, and it's a sign that there is a lot of money to be made in marketing technology,” said Miller. “I believe this will spur additional investment and consolidation in martech, especially B2B marketing platforms. That said, marketing technology has evolved a lot in the almost 13 years since we started Marketo, and new trends like account-based marketing and post-sale expansion are driving companies to rethink what they need in their B2B platform.”
"Adobe has been incredibly successful in helping B2C marketers drive more revenue from digital marketing, so it's not surprising to see them go after a greater share of the market with Marketo,” said Stead. “With this acquisition, Adobe becomes the most comprehensive cloud for marketers, thanks to their depth of creative design and analytics solutions, combined with complete digital advertising tools. It will also open up new streams of B2B revenue for Adobe within the Experience Cloud — the side of their business more in need of growth.”
Others praised the acquisition as a win-win that could help drive innovation in the B2B marketspace.
“Today’s acquisition of Marketo by Adobe is a cause for celebration by all B2B marketers,” said David Lewis, CEO of DemandGen. “Adobe’s products are used and trusted by every corporate marketing team on the planet because all Adobe thinks about is empowering marketers with the tools to create content and foster engagement with audiences.”
“Marketo has fallen off from innovation pace since its IPO, so this is an opportunity to give the platform and the engagement concept that drives it, a real shot in the arm,” said Justin Gray, Founder and CEO of LeadMD. “Adobe currently owns the creative experience and this acquisition gives the Marketo platform the ability to extend its buyer engagement mission by better integrating into online buyer behavior via Adobe experience manager.”