American multinational computer software company Adobe Inc. revealed plans to purchase cloud-based software company Frame.io on Thursday. Adobe mentioned that it plans on buying Frame.io for $1.275 billion. Frame.io produces cloud-based software that can be used to provide input on videos and makes the video editing process a lot easier. Based in New York, Frame.io was created in 2014 to provide a solution to the challenges that creatives face in their workflow.
Frame.io has over 1 million users and has raised almost $100 million since it started in 2014. It has had numerous rounds and has seen participation from global investors like Accel, FirstMark Capital, Insight Partners, SignalFire, and Shasta Ventures and its customers include big names such as Activision, Google, LinkedIn, Netflix, Turner, and Vice according to the information provided on its website.
Integrating Frame.io with Adobe’s creative software would be taking Adobe’s services to the next level. Adobe’s Creative Cloud, where the company gets a major part of its revenue from, could see major enhancements after it gets integrated with Frame.io. In its most recent quarter, about 60 percent of Adobe’s revenue came from Creative Cloud. According to what Adobe said in a statement, the combination of its cloud software and Frame.io’s would “deliver a collaboration platform that powers the video editing process.”
The statement also said that “whether it’s the latest binge-worthy streaming series, a social media video that sparks a movement, or a corporate video that connects thousands of remote workers, video creation and consumption is experiencing tremendous growth”.
“Today’s video workflows are disjointed with multiple tools and communication channels being used to solicit stakeholder feedback. Frame.io eliminates the inefficiencies of video workflows by enabling real-time footage upload, access, and in-line stakeholder collaboration in a secure and elegant experience across surfaces”, it added.
In the past, Adobe has supported its Creative Cloud software with acquisitions like Behance and Fotolia. Adobe plans to boost its Premiere Pro and After Effects applications for video editing with Frame.io’s capabilities. The company’s statement also suggested that Frame.io’s technology could also be incorporated into the Photoshop editing application.
The Adobe-Frame.io deal is expected to close around November this year, in the fourth quarter of its current fiscal year.
Adobe’s shares were unaffected by the announcement; they neither fell nor rose as a result of the announcement.