The deal gives Adobe a sophisticated DSP capability for the first time. Though Adobe had display and search-buying capabilities via the Efficient Frontier acquisition (now Media Optimizer), Adobe has never been lauded for its display media execution.

Publicly traded TubeMogul originated in pre-roll desktop video, but had since expanded into programmatic TV.

Its value proposition is similar to Adobe's own converging marketing cloud and video/TV business, Primetime. The two have integrated more closely in the last year.

Many of TubeMogul's competitors had already flown off the market for prices in line with what TubeMogul has commanded: Adap.tv went to AOL for $405 million, BrightRoll went to Yahoo for $640 million and LiveRail went to Facebook for between $400 million and $500 million.

The transaction values TubeMogul at nearly double where it was at close of market Tuesday.