Adobe To Acquire Behance To Boost Creative Cloud

Financial terms weren't disclosed but Adobe, of San Jose, Calif., said it expects all of Behance's employees, based in New York City, will join the company.

Scott Belsky, Behance CEO, will become an Adobe VP, reporting to Senior VP David Wadwhani. But Belsky will lead Adobe's efforts in the imaging sector.

Behance advised its users all services will remain free. In coming weeks, Behance and Adobe will merge log-ins, the companies said.

Behance, founded in 2006, has already worked with online professional websites including LinkedIn (NYSE:LNKD) as well as with AdWeek, the Rhode Island School of Design and the Smithsonian Institution National Design Awards.

Adobe's Wadwhani said Behance, which claims to have attracted 90 million views of its 3 million projects in the past 30 days, would “accelerate our efforts to enable a more open and collaborative creative community.”

Belsky, in turn, said the “social web” would enhance the digital sector by making more tools available.

Adobe said the Creative Cloud had generated $153 million in revenue for the fiscal year ended Nov. 30. First-year subscriptions reached 326,000. Adobe CEO Shantu Narayen said the number “beat our subscription goals” and that Adobe would use the cloud to integrate creative and marketing services.

Adobe also reported fourth quarter net income rose to $222.3 million, or 44 cents a share, from $173.7 million, or 35 cents, a year earlier. Revenue was flat at $1.15 billion.

In addition, the publishing and imaging software giant said cash and investments rose 21 percent to $3.5 billion.

Shares of Adobe fell 16 cents to $37.71 in Friday trading. They've gained nearly 35 percent this year.