The acquisition of privately held Workfront is expected to close during the first quarter of Adobe’s 2021 fiscal year, which begins in late November.
Until the transaction closes, each company will continue to operate independently.
According to a press release, Adobe and Workfront are "longstanding partners." The companies' businesses will find a "synergy that already exists as both companies claim to have "over 1,000 shared customers" that will create a smooth transition.
The deal will add to Adobe’s offerings in business-to-business and business-to-consumer operations, according to a statement from the company. Those operations have faced increasingly complicated challenges as teams have been dispersed during the coronavirus pandemic.
The combined operation “will bring efficiency, collaboration, and productivity gains to marketing teams currently challenged with siloed work management solutions,” according to the statement.
“The combination of Adobe and Workfront will further accelerate Adobe’s leadership in customer experience management, providing a pioneering solution that spans the entire lifecycle of digital experiences, from ideation to activation,” said Anil Chakravarthy, executive vice president and general manager, digital experience business and worldwide field operations at Adobe.
There should be no changes immediately for Workfront's leadership as CEO Alex Shootman plans to continue leading the business.
Shares of Adobe fell 4.75% to $471.14 in trading Monday and was falling more than 3% in trading Tuesday. The tech-heavy declined Tuesday.
Workfront is a Utah-based software company founded in 2001. The company develops web-based project management tools.