It could be the biggest ad deal of the year: Adobe continued its deep-pocketed dive into video advertising today with the announcement that it’s buying video advertising demand-side platform (DSP) TubeMogul for $540 million. Adobe will pick up all outstanding TubeMogul common stock for $14 per share, and expects the deal to close in the first quarter of 2017.
TubeMogul’s current market cap is $503.6 million. It held an IPO in July 2014.
By acquiring TubeMogul, Adobe can help customers plan advertising investments across desktop, mobile, and television. The deal “will give customer a one-stop shop for video advertising,” said Brad Rencher, Adobe’s executive vice president and general manager for digital marketing.
A demand-side platform lets advertisers make purchases across multiple ad exchanges using sophisticated targeting and automated buying. Adobe notes that it will create an end-to-end advertising and data management solution for both TV and digital. The two companies already share several customers, including Allstate, Johnson & Johnson, Kraft, Liberty Mutual, L’Oréal, and Nickelodeon.
“Combining TubeMogul’s video ad technology with Adobe Marketing Cloud will make the planning, buying, measurement, and optimization of video and TV advertising more effective,” says Jeremy Helfand, vice president of video solutions at Adobe. “Data and content workflows will be further integrated and streamlined, and media buyers and sellers will be able to better reach the most valuable audiences across TV and any connected device.”
The combined offering will bring first-party data from Adobe to TubeMogul’s platform. The solution is independent, meaning that it doesn’t have direct ownership over the media or content, and so can remain neutral about offerings.
“We believe this is a great move for our shareholders, team, and — especially — our clients,” said TubeMogul CEO Brett Wilson in a blog post. “Adobe and TubeMogul will provide a unified advertising and data management solution that enables brands to precisely identify the right segments and plan, execute, and measure paid media across any device.”