Adobe Systems Inc.

ADBE, -3.50%

said Thursday it has agreed to acquire TubeMogul Inc.

TUBE, +81.75%

in a deal valued at about $540 million net of debt and cash. TubeMogul is a video advertising platform that allows brands and agencies plan and buy ads across desktops, mobile devices, streaming devices and TV. Adobe will pay $14 per TubeMogul share and expects to close the deal in the first quarter of 2017. « Whether it’s episodic TV, indie films or Hollywood blockbusters, video consumption is exploding across every device and brands are following those eyeballs, » said Brad Rencher, executive vice president and general manager, digital marketing, at Adobe. The company is expecting the deal to be neutral to non-GAAP earnings in 2017. TubeMogul shares were halted for the news, while Adobe shares were not yet active. They have gained 15% in the year so far, while the SP 500

SPX, +0.20%

has gained 5.8%.