Adobe Aims for $35 with EchoSign Acquisition

+20.34%
Upside
505
Market
607
Trefis
ADBE: Adobe logo
ADBE
Adobe

Adobe (NASDAQ:ADBE) announced that it has acquired EchoSign, a leading provider of digital signatures and signature automation for an undisclosed sum. [1] Adobe makes a significant portion of its revenues by selling document management and collaboration software like Adobe Acrobat suite. Its primary competitors in this business are Oracle (NASDAQ:ORCL), Microsoft (NASDAQ:MSFT) and Salesforce.com (NYSE:CRM).

We currently have a $35 Trefis price estimate for Adobe, which implies 20% upside from the current market price. The Adobe Acrobat family of applications which include document management solutions comprises about 15% of our price estimate for Adobe.

EchoSign’s document signing and tracking solution will be integrated into Adobe’s online document exchange platform, including services like SendNow for managed file transfer, FormsCentral for form creation and CreatePDF for online PDF creation.

Relevant Articles
  1. Down 14% In The Last Trading Session, Where Is Adobe Stock Headed?
  2. Down 8% YTD, What To Expect From Adobe Stock In Q1?
  3. Up 77% Last Year, What To Expect From Adobe Stock?
  4. Adobe Stock Is Trading Below Its Fair Value
  5. Adobe Stock Outperformed The Street Expectations In Q2
  6. Adobe Stock Topped The Consensus In Q1, What’s Next?

EchoSign already has a large customer base of more than 3 million users, which could provide substantial cross-selling opportunities to Adobe helping it increase its Acrobat user base from the current 5 million.

Check out our complete coverage of Adobe.

Notes:
  1. Adobe Acquires EchoSign, Market Watch, July 18, 2011 []