Adobe will acquire Workfront, a Utah based software company providing cloud-based work and project management solutions, for $1.5 billion. The deal is expected to close in Adobe’s first fiscal quarter of 2021.

What Happened: The $1.5 billion acquisition deal will enable Adobe to upgrade its marketing software with collaboration tools for remote work management. TechCrunch reports that Adobe’s Experience Cloud segment will absorb Workfront’s employees.

After completing the acquisition, Workfront CEO Alex Shootman will report to Adobe’s executive vice president and general manager, Anil Chakravarthy. Shootman will retain his position at the helm of WorkFront.

In October 2019, Workfront acquired SaaS company Atiim for an undisclosed amount. Atiim’s performance management system aids small and medium enterprises set goals and track performance using a real-time feedback loop.

Including its previous $280 million funding round in March 2019, Workfront has raised an aggregate of $375 million since its inception in March 2001according to Crunchbase.

Why It Matters: Bloomberg reports that Adobe will also gain access to Workfront’s clientele. Reportedly, Workfront handles around 3,000 corporate customers and over one million users.

The deal opens up prospects in the Adobe’s Experience Cloud Segment, the artificial intelligence-driven marketing & analytics bundle.

Workfront’s portfolio of corporate customers includes companies like T-Mobile, Under Armour, and Home Depot.

Price Action: ADBE shares dropped 4.75% to $471.14 on Monday.

This story originally appeared on Benzinga. 

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