Adobe to buy Day Software
Dips stick in Web2.0 content wasteland
Adobe Systems has agreed to buy Switzerland-based Day Software Holding AG for around $240m in a clear move to bump up the Flash and Photoshop company's Web2.0 portfolio.
It said Day shareholders would get 139 Swiss francs per share (£81.80) in a deal valued at around 255m Swiss francs or £154.6m.
Adobe said the planned buyout wouldn’t affect its 2010 financial earnings excluding items. Instead the costs of the takeover will kick in during the firm’s fiscal 2011 term.
“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,” said senior Adobe digital veep and general manager Rob Tarkoff.
The deal is expected to close in Adobe’s fourth quarter. Day - whose CEO, Erik Hansen, will report directly to Tarkoff - will run its product line under Adobe’s digital enterprise biz unit.
Separately, Day - which is the self-styled "pioneer" of enterprise content management systems - reported revenues of 25.1m Swiss francs(£15.2m) and net income of 3.7m Swiss francs (£2.24m) for the first half of this year. ®