In a statement released Thursday, Adobe said that it had entered into a definitive agreement to acquire TubeMogul for approximately $540 million net of debt and cash.
The purchase of TubeMogul will allow Adobe to build what the company calls an "end-to-end" advertising and data management platform.
"With the acquisition of TubeMogul, Adobe will give customers a 'one-stop shop' for video advertising, providing even more strategic value for our Adobe Marketing Cloud customers," said Brad Rencher, Adobe's executive vice president and general manager, digital marketing in a press release.
In a separate statement, TubeMogul CEO Brett Wilson also said the acquisition would allow customers "to plan, buy, measure and optimize their global video advertising with a neutral, independent partner that doesn't have direct ownership of media or content."
After the morning announcement, shares of TubeMogul surged 81.75 percent on the day and but are only up 2.5 percent for the year. The stock had a market capitalization of $277.8 million as of Wednesday's close, according to FactSet.