Adobe To Acquire Day Software for $240 million
Adobe sign a definitive agreement to acquire Day Software, in an effort to provide a more complete solution for customer-facing web sites and multi-channel customer experiences.
Adobe have announced they have signed a definitive agreement to
acquire Day Software. According to the press release, Adobe will acquire all of the
publicly held registered shares of Day Software for CHF139 per
share in cash, in an overall transaction valued at approximately
CHF255 million. This is approximately $240 million. According to
the press release issued by Adobe, this offer represents a premium
of 59% over Day Software’s volume-weighted average share price for
the last 60 trading days, and the Board of Directors at Day
Software are unanimously recommending the offer to Day
At the Adobe blog, the company describe this
acquisition as a “significant marketing opportunity,” and detail
their plans to enable organisations to create, manage, distribute
and monetise content, and to optimise the web experience for their
customers without disrupting their existing IT infrastructures.
This will be achieved by combining Day Software’s WCM products –
namely Day’s Web Content Management, Digital Asset Management and
Social Collaboration – with Adobe’s enterprise solutions (including
Adobe Connect and Flash Platform) in a more complete solution for
customer-facing web sites and multi-channel customer experiences.
Adobe envision that the Day Software portfolio will, in general,
bring Web Content Management, rich media capabilities and social
collaboration to Adobe’s enterprise solutions.
But what’s in it for Day Software’s customers? Adobe promise
that Day Software customers will be able to leverage more interactive application and document
capabilities from Adobe AIR, Adobe Flash, Flex, Adobe LiveCycle
and PDF. Day Software’s customers will also have the opportunity to
extend their products through Adobe’s Flash platform and PDF-based
solutions, in addition to accessing Adobe’s customer experience
developers and designers.
“Organizations around the globe have recognized the importance
of the online and mobile channel and turned to Day as their
enterprise standard for next generation Web Content
Management,”said Erik Hansen, CEO, Day Software. “We are excited to
join Adobe and combine our expertise in WCM with technologies that
create and deliver rich online and offline experiences leveraging
the ubiquity of Flash and PDF. We believe this is a winning
combination for both Adobe and Day customers.”
It is currently planned that Day Softrware will operate as a
product line within Adobe’s Digital Enterprise Solutions Business
Unit. Pending government approvals and a minimum acceptance
threshold with respect to the tender offer, the deal is expected to
close in the fourth quarter, 2010. Adobe are currently forecasting
that the deal with have “no material impact” on Adobe’s non-GAAP
earnings for fiscal year 2010.
Until the acquisition closes, Adobe and Day will continue to
operate as separate companies.