Moody’s: Adobe unaffected by Marketo buy

Moody's Investors Service said Adobe Systems Inc.'s (A3 stable) announcement that it will acquire Marketo (B3 stable) for $4.75 billion has no effect on its A3 senior unsecured rating or stable outlook at this time.

The agency said it expects Adobe to fund the acquisition with a mix of cash on hand and debt issuance proceeds, leading to increased debt and diminished liquidity.

Although the company has not disclosed the proportion of cash and debt, Moody's said it expects Adobe will maintain debt to EBITDA below 2 times and cash balances of at least $2 billion.

The agency said it views the transaction as strategically sound as it expands Adobe's digital marketing capabilities by adding an established cloud-based marketing platform.

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