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The acquisition leverages natural synergies between both Aprimo and ADAM Software PHOTO: Clem Onojeghuo

Aprimo’s acquisition of ADAM Software came as no surprise to anyone who follows the highly-fragmented DAM market. 

If you are wondering what this deal means to you and the market as a whole, here are seven things you should know about it:

1. ADAM Software Boosts Its US Presence

Despite the US being the largest DAM market, most of ADAM’s team has been based in Ghent, Belgium. The company has moved some of its leadership roles to the US in recent years, but its American team had a lot of ground to cover with very limited local resources. 

Becoming a part of an American company such as Aprimo gives ADAM an immediate extended local footprint, both in terms of the existing customer base and the support, sales and engineering teams available on the ground.

2. Best-of-Breed Loses Ground to Software Suites

While ADAM Software’s platform has been well-regarded in the industry, in recent years the company wasn’t growing its customer base as successfully as some of the vendors offering integrated product suites. Being a part of a larger group of products may allow ADAM be more competitive in comparison with players like Adobe and OpenText.

3. The Acquisition Leverages Synergies Between Both Companies

Industry analysts noted in the past that Aprimo’s platform had some gaps in terms of its DAM capabilities. ADAM worked with Aprimo in the past and both platforms had been integrated through a connector available via ADAM’s marketplace. 

Likewise, many ADAM customers had been asking for a solution that could manage the complete lifecycle of digital assets. Some of them were using the platform to manage their creative process, but this approach required a high level of customization and was pushing ADAM’s solution beyond its comfort zone. 

All of the above makes ADAM and Aprimo a natural fit.

4. Possibly More M&A Activity Down the Road?

Aprimo relaunched its brand last year after having spent five years under the Teradata umbrella. 

The company used to be the industry leader and innovator, but fell behind the pack under Teradata’s management. The company is now owned by Marlin Equity, which has other marketing technology firms in its portfolio. 

Even though this is pure guesswork at this time, I wouldn’t be surprised if Marlin merged Aprimo with other martech companies to create a broader product suite. It has already set this precedent with the BlueHornet and TMA merger.

5. Aprimo Will Likely Help Boost ADAM’s Cloud Strategy

ADAM has lagged the market in cloud strategy. Even though the company offers Platform as a Service on Azure, it wasn’t getting as much traction in the market as one might expect. 

Aprimo, on the other hand, has the SaaS model in its DNA, which could help ADAM pave the way for expansion into the midmarket customer base.

6. Analyst Will Approve of the Deal

Industry analysts have repeatedly described ADAM Software as a market leader, but it’s been receiving low scores for its cloud strategy, market presence and product roadmap. Becoming a part of Aprimo should help ADAM strengthen its position as a market leader, due to some of the reasons described above.

7. Winners and Losers

Overall, Aprimo’s acquisition of ADAM Software should be seen as good news for the very crowded DAM market. 

The biggest winners of this deal will be the customers, who will benefit from a more competitive vendor landscape. The biggest losers are any companies looking to enter the DAM space through acquisition. After the OpenText MediaBin deal, the acquisition targets are slowly dwindling (I’m looking at you, Sitecore and Microsoft).

(Disclaimer: The author works for Hero Digital, a partner of ADAM Software. The views he expresses above are his own, not his company's)