Adobe acquires video ad platform Auditude for $120M (updated)

Adobe has acquired video advertising platform Auditude, the companies announced today. [Update: While financial terms of the deal were not publicly disclosed, Adobe is said to have paid close to $120 million (mostly in cash) for the startup, according to sources familiar with the matter.]

Auditude allows its clients to manage and monetize advertising around premium video content. Its service lets publishers and media companies create high-quality advertising experiences across multiple platforms and devices. The company’s clients include Comcast, Sony Music and Universal Music Group.

“We felt that Auditude was really a market leader, not only from a technology perspective, but also in the way that they look at the market,” said Adobe Vice President and General Manager of Media Solutions Todd Teresi in an interview with VentureBeat. “Auditude is not only focused on video, but alternative devices as well … connected devices like tablets, smartphones, gaming consoles.”

“At Adobe, we really see those devices as the future of video growth and premium content,” Teresi said in response to a question about what makes Auditude stand out over other video ad platforms.

The acquisition will allow Adobe to provide a complete “end-to-end” experience, meaning its clients will be able to create, publish, monetize and optimize videos from one place. The company said it plans to integrate Auditude with its other products, such as Adobe Digital Marketing Suite, Adobe Flash Media Server and Adobe Pass. The integration is tentatively scheduled to begin rolling out in early 2012, according to Teresi.

Founded in 2007, the Palo Alto-based startup previously raised a total of $38 million in funding to date from Redpoint Ventures and Greylock Partners.