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Adobe (ADBE) to Boost Workflow Management Via Workfront Buyout

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Adobe (ADBE - Free Report) has signed a definitive agreement to acquire Workfront, a provider of work management platform, in a bid to enhance the capabilities of its Experience Cloud.

Notably, the company gave consent to pay $1.5 billion for this acquisition, which is expected to close in the company’s first quarter of fiscal 2021.

We believe, the buyout will strengthen the company’s offerings by adding work allocation tool to its portfolio.

Moreover, the latest move will aid Adobe in bolsteringits online marketing capabilities, which in turn, will drive its momentum among customers. Strong online marketing tools will help the company’s customers seamlessly manage their marketing projects.

Additionally, the acquisition will make Adobe Experience Cloud more collaborative. This is in linewith the company’s growing efforts toward the advancement of its Experience Cloud.

Workfront Holds Promise

By dint of this buyout deal, Workfront’s platform, which already gained solid popularity, will allow Adobe to capitalize well on growing demand for workflow management software in this data-driven world, on the completion of the deal.

Per a Grand View Research report, the global workflow management system market is expected to witness a CAGR of 27.7% during the 2019-2025 forecast period.

Going by the Fortune Business Insights data, the worldwide task management software market is anticipated to hit $4.5 billion by 2026, seeing a CAGR of 13.3% between 2019 and 2026.

We note that thislatest move for inorganic growth will aid Adobe in penetrating fast into these potential markets.

Moreover, the underlined deal holds promise in this coronavirus-hit world, which consistently highlighted the importance of work management tools that became crucial for companies to ensure a uninterrupted flow of work from home.

Wrapping Up

The acquisition under review will enable Adobe to offer collaboration tools for the first time.

Moreover, the latest move, which will combine Experience Cloud with Workfront, will help the company offer efficiency and collaboration to its customers and ensure their productivity gains.

This, in turn, will likely bolster the adoption rate of Adobe Experience Cloud, driving the company’s top line in the process.

Additionally, the strategic action ups Adobe’s game against other companies, such as Microsoft (MSFT - Free Report) , Citrix (CTXS - Free Report) and ServiceNow (NOW - Free Report) among others, which are also making robust efforts to fortify their workflow management capabilities.

Currently, Adobe carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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