Adobe Systems, the world's biggest maker of software that helps people create, read and share digital material online, intends to try advertising.
The San Jose, Calif., company, which makes graphic design software such as Flash, Acrobat and Photoshop, is snapping up Omniture ( OMTR - news - people ) for $1.8 billion. The acquisition, expected to finalize in late-November, will diversify Adobe's ( ADBE - news - people ) business beyond design tools into Omniture's marketing research realm.
Omniture is a publicly held online marketing and web analytics company based in Orem, Utah with offices worldwide. It serves customers in 75 countries worldwide.
For Omniture's customers, including Apple ( AAPL - news - people ), Time Warner ( TWX - news - people ), Walt Disney ( DIS - news - people ) and advertising holding company WPP ( WPPGY - news - people ), the deal will create a one-stop shop for software services that can display ads and collect data from them.
The move comes just after Adobe reported third-quarter revenue dropped 21% to $697.5 million from the year before. Consumer demand for Adobe's Creative Suite 4, the software package that accounts for the majority of the company's sales, has slumped amid the recession. The leap into advertising analytics is also Adobe's attempt to strengthen its grip on the Web, as Microsoft ( MSFT - news - people ), maker of graphic design software Silverlight, has over the past two years aimed to chip away at Adobe's dominance. Adobe is installed on 90% of personal computers.
The Omniture deal will be Adobe's biggest buy since 2005, when it bought Macromedia for $3.4 billion. Omniture is expected to bring a steady revenue source to Adober, according to Forbes' report.
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