The Adobe Systems Inc. logo is displayed on a computer monitor in an arranged photograph taken in Tiskilwa, Illinois, U.S. (Photographer: Daniel Acker/Bloomberg)

Adobe Systems Is Nearing $5 Billion Deal for Marketo

(Bloomberg) -- Adobe Systems Inc. is in talks to buy software maker Marketo Inc. for about $5 billion, according to a person familiar with the matter.

A transaction, which would be Adobe’s largest, could be announced as soon as Thursday, said the person, who asked not to be identified because the matter isn’t public.

Representatives for Adobe and Marketo declined to comment.

The deal would bolster San Jose, California-based Adobe’s efforts in marketing technology, as it competes with Inc. and Oracle Corp. in software that lets businesses better target consumers.

Adobe, the maker of image-editing tool Photoshop, has sought to develop an end-to-end software suite that includes advertising, analytics and e-commerce programs. Marketo, owned by Vista Equity Partners LLC, would be one of the last pieces of that puzzle for Adobe. The company bought Magento Commerce for $1.7 billion in June to enter the e-commerce software segment.

Private equity firm Vista bought San Mateo, California-based Marketo in 2016 for $1.8 billion.

It makes marketing software that companies use to identify new customers and reach them through email, text messages, social media and other channels, according to its website. It also offers analytical services.

Adobe’s largest acquisition was its $3.4 billion purchase of Macromedia Inc. in 2005, according to data compiled by Bloomberg.

Reuters reported that Adobe was negotiating to buy Marketo last week. CNBC reported the transaction value earlier Thursday.

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