Adobe is acquiring ad tech company TubeMogul for $450 million, net of debt and cash, the company announced on Thursday.

The deal will see Adobe acquiring all TubeMogul’s common stock for $14 per share. TubeMogul went public in 2014, listing at $7 a share. Its stock is currently trading at around the same price.

TubeMogul specialises in video advertising and offers advertisers a demand-side platform (DSP) to plan, buy, and measure video ads using automated systems.

Brad Rencher, Adobe executive vice president and general manager of its digital marketing division, said in a statement: “Whether it’s episodic TV, indie films or Hollywood blockbusters, video consumption is exploding across every device and brands are following those eyeball. 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.”

TubeMogul announced its third-quarter results on Wednesday. Revenue grew 21% year-on-year to $56.1 million, which just tipped the midpoint of the company’s guidance. TubeMogul said brand advertisers are “increasingly looking to consolidate their spend on a single platform,” which put the company in a strong position to win their ad spend.

TubeMogul’s net losses increased from $3.75 million in the third quarter of 2015, to $12.4 million. Adjusted EBITDA came in at a loss of $0.3 million, compared to a gain of $1 million in the year-ago quarter. The company stated it had cash and cash equivalents of $84 million in the quarter.

Here is the letter TubeMogul CEO Brett Wilson sent to TubeMogul’s clients and partners:

“I’m thrilled to share the news that TubeMogul has entered into a definitive agreement to be acquired by Adobe Systems.

I want to thank our clients, shareholders, team and partners for your invaluable contributions in getting us to this point. Together, we accomplished a lot. You helped us break down barriers where others saw walled gardens. You helped us launch the first solution for automated, data-driven buying of linear TV ads. You helped us draw attention to misaligned incentives in the market. And you gave us confidence to automatically offer refunds to platform clients for non-human traffic.

We believe this is a great move for our shareholders, team and — especially — our clients. Adobe and TubeMogul will provide a unified advertising and data management solution that enables brands to precisely identify the right segments and plan, execute and measure paid media across any device.

This will be the industry’s first independent end-to-end video advertising platform. Current TubeMogul clients can envision a future where first-party data and measurement from Audience Manager and Adobe Analytics is available directly in TubeMogul’s platform — a combined data and buying dynamo that spans TV and digital formats.

Of course, TubeMogul has long been known for independence and many of you partnered with us due to our buy-side, media-agnostic approach. What’s especially exciting about this acquisition is that it actually deepens that commitment.

A combined Adobe and TubeMogul is uniquely aligned with advertisers. Once integrated, this will enable brands and agencies to plan, buy, measure and optimise their global video advertising with a neutral, independent partner that doesn’t have direct ownership of media or content. Our combined incentive is to arm marketers with insights on what’s working — and act on it.

Beyond strategy and product fit, I’m incredibly proud to call Adobe home because we share similar values and corporate cultures. Both companies have a track record of innovating marketing and advertising through software (in Adobe’s case, dating back decades). Both companies invest in building a culture of doers. And both companies are driving transparency in the industry.

Openness is also a common value. We expect to continue taking an open approach with new integrations, with new partnerships assessed based on marketer demand.

Our commitment to our clients, team and partners is stronger than ever. With Adobe, we can realise our mission to make advertising simpler and more accountable in bigger and more profound ways.

As always, we’re here to honestly answer your questions and arm you for success.

Thanks,

Brett Wilson, CEO and co-founder of TubeMogul”

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