CALIFORNIA, U.S. - In a deal that is set to bolster its cloud-based digital marketing business, Adobe Systems Inc has announced that it will be buying Marketo Inc.
Adobe said that it was acquiring Marketo Inc from private equity firm Vista Equity Partners Management for $4.75 billion.
Launched in 2006 as an email marketing service, Marketo was taken private by Vista for $1.8 billion in 2016.
According to an analysis by credit ratings agency Moody's Investors Service Inc, in 2017, the San Mateo, California-based company generated a revenue of about $321 million.
The move comes as Adobe is intensifying its focus in the competitive and fast-growing cloud business.
Currently, the cloud business is dominated by Microsoft Corp, Oracle Corp and Salesforce.
In its statement announcing the acquisition, Adobe has stated that "Marketo's business-to-business marketing applications will complement Adobe's digital marketing business, which provides cloud-based tools to help create, manage and analyze advertising and marketing campaigns."
Adobe added in its statement that Marketo Chief Executive Officer Steve Lucas will join the company's senior leadership team and continue to lead the Marketo team.
Lucas, who was a former SAP SE executive was brought on board as the CEO of Marketo in 2016, after the company was acquired by Vista.
Lucas has since helped revive sales growth at the company.
Further adding that the deal is expected to close in the fourth quarter of Adobe's fiscal 2018.