Adobe To Buy Video Advertising Platform TubeMogul For About $540 Million

Adobe Systems Inc. said Thursday it has agreed to acquire TubeMogul Inc. in a deal valued at about $540 million net of debt and cash. TubeMogul is a video advertising platform that allows brands and agencies plan and buy ads across desktops, mobile devices, streaming devices and TV. Adobe will pay $14 per TubeMogul share and expects to close the deal in the first quarter of 2017. "Whether it's episodic TV, indie films or Hollywood blockbusters, video consumption is exploding across every device and brands are following those eyeballs," said Brad Rencher, executive vice president and general manager, digital marketing, at Adobe. The company is expecting the deal to be neutral to non-GAAP earnings in 2017. TubeMogul shares were halted for the news, while Adobe shares were not yet active. They have gained 15% in the year so far, while the S&P 500 has gained 5.8%.