Adobe buys Allegorithmic in 3D business push

Adobe has acquired Allegorithmic, makers of Substance, the industry standard for 3D textures and material creation in game and video post-production.
Adobe at a trade eventThe company did not reveal the financial details of the acquisition of the France-based Allegorithmic. Adobe did not disclose details on the possible positive impact on its revenue in coming quarters following the acquisition.

Adobe aims to empower video game creators, VFX artists, designers and marketers to deliver the next generation of immersive experiences by combining Allegorithmic’s Substance 3D design tools with Creative Cloud’s imaging, video and motion graphics tools.

The acquisition of Allegorithmic will enable Adobe to adding expanded 3D and immersive workflows to Creative Cloud and provides Adobe’s core customer base of designers a new set of tools for 3D projects.

Scott Belsky, chief product officer, Creative Cloud, Adobe, said: “Creative Cloud is the creativity platform for all and Substance products are a natural complement to existing Creative Cloud apps that are used in the creation of immersive content, including Photoshop, Dimension, After Effects and Project Aero.”

Allegorithmic has a diverse customer base across gaming, film and television, ecommerce, retail, automotive, architecture, design and advertising industries, including creative brands like Electronic Arts, Ubisoft, BMW, Ikea, Louis Vuitton, Foster + Partners and more.

Sebastien Deguy, the CEO and founder of Allegorithmic, will take a leadership role in Adobe’s broader 3D and immersive design efforts as vice president, 3D and Immersive, reporting into Scott Belsky.

Allegorithmic offers its tools as a subscription to individuals and enterprise customers. Adobe will focus on expanding Allegorithmic tools via subscription.

Adobe will announce an update on offerings bringing the power of Allegorithmic technology and Adobe Creative Cloud together.

Adobe acquired Marketo in October 2018 and added approximately $21 million of revenue in the fourth quarter of 2018.

Adobe achieved revenue of $2.46 billion (+23 percent) in its fourth quarter of fiscal year 2018 and $9.03 billion (+24 percent) in fiscal year 2018. Adobe is targeting $2.54 billion revenue during the first quarter fiscal year 2019.

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