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Thursday, September 20, 2018

Adobe closing in on acquisition of software company Marketo for about $5 billion, sources say

Adobe is nearing an acquisition of marketing software company Marketo for around $5 billion, according to people familiar with the matter.

The companies are in the final stages of reaching a deal, said the people, who asked not to be named because the negotiations are private. An announcement could happen Thursday or Friday, the people said.

Vista Equity Partners, a private equity firm than specializes in software and technology, acquired Marketo for about $1.8 billion in 2016. Adobe and Microsoft were both bidding for Marketo in 2016, sources said, but ultimately Vista won it.

The transaction helps validate Vista's strategy of buying higher-growth software companies such as Marketo. Reuters first reported Adobe was in talks to buy Marketo earlier this month.

The acquisition will help Adobe better compete with Salesforce, which got into marketing automation -- for managing outreach to potential and existing customers over multiple channels in order to drive sales -- with its $2.5 billion acquisition of ExactTarget in 2013.

An Adobe spokesman wouldn't comment. Marketo did not immediately respond to a request for comment. A Vista spokesman declined to comment.

-- CNBC's Jordan Novet contributed to this report.

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