On Wednesday, Adobe Systems Inc. released a statement which revealed that it will introduce a public tender offer valuing at $240 million to buy Web software manufacturer Day Software Holding.
Adobe, with this move, will expand its portfolio of Web content-management offerings. The strategy would enable the Company to create and manage creative online content.
The Day’s software will aid Adobe in managing the unstructured contents, which includes animation, video, photos or text. It also manages content from outside sources like customer reviews or blog postings and thus, assists social media.
In an interview, Rob Tarkoff, the possessor of Adobe's Digital Enterprise Solutions group, told that they will make the purchase at 139 Swiss francs and the offer will close in between Adobe's fiscal fourth quarter ending on Nov 30, after meeting the required acceptance level.
The Companies that are using this software currently are General Motors Co., McDonald's Corp. and Intercontinental Hotels Group. The names of novel signatories include BMW AG and Hyatt Hotels Corp., which made deal with Day software in the last quarter.
The buyout will reinforce the worth of Adobe's flagship CS5 suite, as told by analysts of Morgan Stanley in a research note.
Earlier, Adobe was embroiled in a controversy with Apple Inc. over its Flash technology.
Day Software Chief Executive, Erik Hansen stated that the Company’s revenues have been increasing at an average of 70% in the past four quarters and the sales are also climbing up by two-fold.