Adobe Buys Day Software to Bolster ECM Portfolio

Adobe Buys Day Software to Bolster ECM Portfolio

Adobe Systems this week announced it will pay $240 million to acquire Day Software Holding, a Swiss maker of Web-based enterprise content management (ECM) software applications.

Along with giving Adobe (NASDAQ: ADBE) customers more options for managing all the digital content floating around their networks, the purchase will give the San Jose, Calif.-based publishing and document management software leader another established installed base of customers to push its ubiquitous Flash, Flex, PDF and LifeCycle applications.

[login]Day Software’s flagship CQ5 suite provides Web content management, digital asset management and social collaboration tools to help enterprise customers create, manage, organize and distribute digital content online and throughout their organizations.

“Adobe’s acquisition of Day represents a key milestone in our efforts toward delivering best-in-class customer experience management solutions to enterprises and governments worldwide,” Rob Tarkoff, general manager of Adobe’s Digital Enterprise Solutions group, said in a statement. “With the addition of Day to our enterprise portfolio, we will be able to enhance the value of our offering and deliver on our vision of the Web as the hub of customer interaction.”

IBM (NYSE: IBM), Oracle (NASDAQ: ORCL), Microsoft (NASDAQ: MSFT) and EMC (NYSE: EMC) are all slugging it out for the lion’s share of a worldwide ECM market that Gartner predicts will grow at almost 10 percent a year for the next three years.

Gartner says that while on-demand offerings only represented about 4 percent of total ECM sales last year, the SaaS model will become an increasingly larger part of the overall revenue mix starting in 2010. The IT researcher predicts worldwide ECM software sales will eclipse $5 billion by 2013, up from the $3.3 billion in sales reported in 2008.

In June, Oracle released an update for its Enterprise Content Management Suite 11g, an applications suite that company officials touted as “a universal repository” that brings content and content management tools “to where people work.”

Adobe officials said the acquisition is expected to close in the fourth quarter and will have no material impact on the company’s earnings for the 2010 fiscal year. However, it is expected to be accretive to the company’s earnings in 2011, though Adobe wouldn’t quantify exactly how much more income it expects the Day Software unit to contribute to its fiscal 2011 results.

Day Software will be folded into Adobe’s Digital Enterprise Solutions unit. Day CEO Erik Hansen is expected to join Adobe and will report directly to Tarkoff once the deal is completed.

Adobe Systems shares trimmed $0.39 a share, or 1 percent, to $28.83 in Wednesday afternoon trading.

TAGS: Adobe, ECM, software, Web content, acquisition

Share the Post:
Heading photo, Metadata.

What is Metadata?

What is metadata? Well, It’s an odd concept to wrap your head around. Metadata is essentially the secondary layer of data that tracks details about the “regular” data. The regular

XDR solutions

The Benefits of Using XDR Solutions

Cybercriminals constantly adapt their strategies, developing newer, more powerful, and intelligent ways to attack your network. Since security professionals must innovate as well, more conventional endpoint detection solutions have evolved

AI is revolutionizing fraud detection

How AI is Revolutionizing Fraud Detection

Artificial intelligence – commonly known as AI – means a form of technology with multiple uses. As a result, it has become extremely valuable to a number of businesses across

AI innovation

Companies Leading AI Innovation in 2023

Artificial intelligence (AI) has been transforming industries and revolutionizing business operations. AI’s potential to enhance efficiency and productivity has become crucial to many businesses. As we move into 2023, several

data fivetran pricing

Fivetran Pricing Explained

One of the biggest trends of the 21st century is the massive surge in analytics. Analytics is the process of utilizing data to drive future decision-making. With so much of