It seems to confirm the news Adobe Will Create New Business Unit To Handle Its Most High-profile Products, Adobe Systems said Wednesday that it has acquired Day Software, which makes enterprise content management software, for $240 million, holding in a deal now. Adobe plans to use to strengthen its enterprise software offerings.
- Why Adobe Buy Day Software
Day will become a product line within Adobe’s Digital Enterprise Solutions Business Unit, and Day’s CEO, Erik Hansen, will join Adobe as part of the deal.
“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,”
the U.S. software vendor said.
This acquisition represents a significant market opportunity for Adobe to help organizations transform themselves by enabling them to create, manage, distribute and monetize content while optimizing the web experience for their customers.
- Day Software Be Worth $240 Million?
In a separate statement, Day Software reported total revenues of 25.1 million francs and net income of 3.7 million francs for the first half of 2010.
If this deal will be approved by govement, Day shareholders will receive 139 Swiss francs per share, a 34 percent premium to Day’s Tuesday close of 104 Swiss francs, Adobe’s acquisition of Day will strengthen the company’s enterprise software solutions with market leading Web Content Management (WCM), Digital Asset Management and Social Collaboration offerings.
Day’s leading web solutions combined with Adobe’s existing enterprise portfolio will enable customers to better integrate their global web presence and business applications, Day customers will be able to leverage more interactive application and document capabilities from Adobe AIR, Adobe Flash, Flex, Adobe LiveCycle and PDF.
Adobe will take the ability to help customers realize the full potential of the web in acquiring, servicing and retaining their customers, without disrupting their existing IT infrastructures.
Erik Hansen, CEO, Day Software said,
“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,”
“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.”
- Transaction Details
As part of the expected integration of the two companies, Day will operate as a product line within Adobe’s Digital Enterprise Solutions Business Unit. Day CEO Erik Hansen will join Adobe reporting directly to Rob Tarkoff. Hope Erik Hansen will NOT be the next Josh James.
The proposed offer represents a premium of 59 percent over Day’s volume-weighted average share price for the last 60 trading days. The Board of Directors of Day unanimously recommends the offer to Day shareholders. The Chairman and the CEO of Day and other Board members have entered into undertakings to tender their shares.
The deal is subject to government approval before it can be finalized. Adobe expects to close the deal in the fourth quarter of its 2010 fiscal year.
More details regarding the transaction are available on Adobe Investor Relations page, and here is a quick link of Adobe to Acquire Day Software (PDF: 61k ).
- About Day
Day Software is the Enterprise Content Management (ECM) pioneer that leading global enterprises rely on for their Web 2.0 content application and content infrastructure needs. Day’s Content Repository Extreme (CRX) is the industry’s leading Java Content Repository (JCR) that provides unique virtualization services to consolidate legacy repositories and unique cloud computing services to lower IT operational costs. Day’s CQ5 provides industry-leading Web Content Management, Digital Asset Management, and Social Collaboration in a single, unified suite and won the 2009 InfoWorld Technology of the Year Award for “Best Web CMS”.
Day is an international company with headquarters in Basel, Switzerland and Boston Massachusetts, traded since April 2000 on the SIX Swiss Exchange, and “Over the Counter” (OTC) as American Depositary Receipts (OTCQX:DYIHY). Day’s customers are worldwide leading global enterprises, including: Adobe, Audi, Volkswagen, Daimler, BMW, General Motors, Nissan, Williams Sonoma, John Lewis, Hyatt, Intercontinental Hotels Group, McDonalds, Newsweek, and MTV.