Adobe has announced that it is acquiring video collaboration start-up Frame.io for $1.276 billion (roughly £937m).
New York-based Frame.io was founded in 2014 as a workflow service for filmmakers. It takes time consuming processes, such as editing footage, and makes it asynchronous over the web, similar to Google Workspace.
Adobe said it has tried to create its own collaboration software, but instead settled on buying Frame.io because some of its customers were already using it in their workflows. The startup's cloud-based software allows users to store and view footage, and also leave edits, with a simple shareable link. It also already has integrations with popular video editing software, such as Adobe's Premiere Pro, Apple's Final Cut and Avid Media Composer.
"Frame.io and Adobe share a vision for the future of video creation and collaboration that brings together Adobe's strength in video creation and production and Frame.io's cloud-native platform," said Emery Wells, Frame.io CEO. "We're excited to join Adobe to continue to drive video innovation for the world's leading media and entertainment companies, agencies, and brands."
As part of the deal, Wells and co-founder John Traver will join Adobe, with the former remaining in charge of the Frame.io team, but reporting to Creative Cloud CPO Scott Belsky. However, there are no details as yet as to what a Frame.io subscription will look like via Adobe. Currently, there is a limited version of the service available for free, and also an enterprise tier starting at $15 per month, but both could change after the deal closes during the fourth quarter of Adobe's 2021 fiscal year.
The full valuation of the deal is also still subject to customary purchase price adjustments and, until the transaction closes, each company will continue to operate independently.
