Adobe Systems Incorporated (ADBE) announced that it has acquired California-based EchoSign, a leading Web-based provider of electronic signatures and signature automation.
The cost of the transaction was not revealed.
Adobe plans to add EchoSign's electronic signature technology to its document exchange services platform to reduce time, costs and complexity associated with traditional signing methods, such as fax and overnight envelopes. The EchoSign solution will be integrated with other Adobe document services, including SendNow for managed file transfer, FormsCentral for form creation and CreatePDF for online PDF creation.
The EchoSign acquisition promises ample business opportunities for Adobe as a huge number of overnight envelopes are sent for signature everyday. The electronic signature technology automates the entire process from the request for signature to the distribution and execution of the form or agreement. The acquisition will bring visibility into the signature process and enable individuals, small to medium-sized businesses (SMBs) and enterprise customers to automatically store and manage all signed documents.
Additionally, EchoSign’s services include a set of application programming interfaces for integration with company-specific solutions to improve the process of sending, tracking and signing digital documents. The technology is already integrated with services from vendors like Salesforce.com and NetSuite, a vendor of cloud computing business management software suites.
Adobe is one of the largest software companies in the world and its second quarter results beat the Zacks Consensus Estimate on both the top and bottom lines. We remain encouraged by Adobe’s market position and compelling product lines. Moreover, the EchoSign acquisition will help Adobe to grow in attractive markets like the U.K.and Germany. Of course, competition from Apple Inc. (AAPL), Google (GOOG) and Microsoft Corporation (MSFT) remains as strong as ever.
We are maintaining our Hold rating over the long term (6–12 months) on Adobe shares. Currently, the stock carries a Zacks #3 Rank, indicating a short-term Neutral recommendation.
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