Follow
Adobe Systems Inc., the famous Photoshop maker agreed to acquire Fotolia for 800 million. Fotolia is a privately-owned company by Kohlberg Kravis Roberts & Co. The Photoshop maker and design software Illustrator has changed to cloud services and reported quarterly proceeds above the market estimates, which helped sales on higher subscription of Creative Cloud suite. The procurement happened in September at Aviary. Adobe is expecting that that deal will finally step up on its strategy in order to raise its Creative Cloud for third-party apps. In the extended trading, Adobe shares were raised up to 8 percent. The company has lots of plans and activities for Fotolia. The first one is to raise the average revenue for every user via creative cloud since it offers stock photos and video. AT the same time, the company also plans of continuing Fotolia as an independent service.
For the first quarter which will end on Feb. 28, the company is expecting an improved profit per share of about 34-40 cents at a range of $1.05 billion-$1.10 billion. According to the report, Adobe has switched for its Creative Suite 6 from traditional box licenses to web-based subscription to draw predictable recurring profits. Adobe’s net income on the fourth quarter has increased up to $73.3 million from $65.3 million. While the analysts were expecting revenue of $1.06 billion, the company attained a $1.07 billion figure.
