Friday, June 28, 2013

Investopedia: Adobe Patches A Hole With A $600 Million Purchase

Make no mistake about what Adobe (Nasdaq:ADBE) management is thinking – the company's legacy digital media business (Creative Suite/Creative Cloud, which includes well-known offerings like Photoshop) is primarily a source of cash flow, while digital marketing/marketing cloud is where the company's future growth will be generated. To that end, Adobe is spending another $600 million to enhance its capabilities and compete more effectively with the likes of Oracle (Nasdaq:ORCL), IBM (NYSE:IBM), and Salesforce.com (NYSE:CRM).

Spending Money To Make Money
Adobe announced Thursday evening that it had reached an agreement to acquire privately-held Neolane for $600 million in cash. While certainly not a household name to most investors, Neolane is an emerging player in marketing management software, with a strong position in areas like lead management and cross-channel campaign management.

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http://www.investopedia.com/stock-analysis/062813/adobe-patches-hole-600m-purchase-adbe-orcl-crm-ibm-mkto.aspx

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