TubeMogul Inc (NASDAQ:TUBE) stock was skyrocketing on Thursday following news of a deal with Adobe Systems Incorporated (NASDAQ:ADBE).
The deal with Adobe Systems Incorporated will have it acquiring TubeMogul Inc for $14 per share. It represents a roughly 83% premium over TUBE stock’s closing price on Wednesday. This has the total value of the deal sitting at $540 million, when including debt and cash.
TubeMogul Inc will join Adobe Systems Incorporated’s Digital Marketing business once the acquisition is complete. TUBE will continue to be led by current CEO Brett Wilson after the deal is completed.
ADBE said that it doesn’t expect the deal to acquire TUBE to affect its non-GAAP earnings for the fiscal year of 2017. The company currently doesn’t have any estimates available for how the deal will affect its future GAAP earnings.
“Whether it’s episodic TV, indie films or Hollywood blockbusters, video consumption is exploding across every device and brands are following those eyeballs,” Brad Rencher, Executive Vice President and General Manager for Digital Marketing at Adobe Systems Incorporated, said in a statement. “With the acquisition of TubeMogul, Adobe will give customers a ‘one-stop shop’ for video advertising, providing even more strategic value for our Adobe Marketing Cloud customers.”
Adobe Systems Incorporated and TubeMogul Inc are expecting the deal to be completed during the former’s first quarter of fiscal 2017. The deal will need approval from regulators, and to complete other customary closing conditions, before it can be completed.
TUBE stock was up 81% and ADBE stock was down 4% as of Noon Thursday.
