NEW YORK, NY – NOVEMBER 16: Honoree, Shantanu and Narayen attend the 63rd Annual Public Advertising Service Awards Dinner at The Waldorf Astoria on November 16, 2016 in New York City. (Photo by John Lamparski / WireImage)
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Adobe said Thursday it plans to acquire Frame.io, a cloud-based software company that allows multiple people to provide information about videos, for $ 1.27 billion. Adobe’s shares did not change in the news.
The move could lead to improvements to Creative Cloud software, where Adobe earns a significant portion of its revenue. Previously, the company has strengthened Creative Cloud with acquisitions such as the stock content market Fotolia and the social networking site Behance.
Frame.io can drive Adobe’s Premiere Pro and After Effects video editing applications with review and approval features, Adobe said in a statement. The technology can also be incorporated into the Photoshop editing application, Adobe said.
In the most recent quarter, 60% of Adobe’s revenue came from Creative Cloud. Creative Cloud revenue increased approximately 24% year-over-year. Adobe has raised the price of Creative Cloud, noting improvements over the years. At the same time, Adobe aims to add Creative Cloud subscribers.
Frame was founded in 2014 and is headquartered in New York, with more than 250 employees on LinkedIn. Investors include Accel, FirstMark Capital, Insight Partners, SignalFire and Shasta Ventures. According to the start-up’s website, Frame’s clients include Activision, Google, LinkedIn, Netflix, Turner and Vice.
Adobe expects the deal to close in the fourth quarter of its current fiscal year, which will end around November 30th.
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