Adobe Systems Inc.
) recently announced its decision to acquire digital-marketing
company Neolane Inc. for $600 million in cash.
Paris-based Neolane Inc. is a privately-held company founded
in 2001. It develops marketing automation and cross-channel
campaign management software and services for B2B and B2C
marketers. It also allows its customers to undertake personalized
campaigns through direct mail, e-mail, SMS, MMS and other modes
of communication. Some of the company's customers include Accor
Hotels, Alcatel-Lucent, AXA, barnesandnoble.com, Debenhams, Dior
and EF Educational Tours.
The Neolane deal represents another step by Adobe to boost its
Marketing Cloud offerings. The acquisition of Neolane will enable
Adobe to utilize a number of social media-tracking and analysis
tools for handling leads, marketing resource management,
high-volume email marketing campaigns and a real-time offer
recommendation engine for personalized as well as one-to-one
messages. After the closure of the deal, Neolane will become a
part of Adobe's Marketing Cloud product line.
We remain highly optimistic about Adobe's strategic
acquisitions and continued innovation, which have given it a
strong market position. Prior to the acquisition of Neolane,
Adobe acquired Efficient Frontier to enhance its Adobe Marketing
Cloud by adding optimization capabilities for search and display
advertising and accelerating its entry into social
Adobe's total revenue in the second quarter of fiscal 2013 was
$1.011 billion, up 0.3% sequentially but down 10.1% year over
year. Reported revenues were within management's guided range of
$975.0 million to $1.025 billion. The sequential increase was
attributable to increased adoption of Adobe's Creative Cloud.
Currently, Adobe has a Zacks Rank #3 (Hold). Other stocks in
the sector that have been performing well and are worth a look
Aspen Tech Inc.
), all carrying a Zacks Rank #1 (Strong Buy).
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