With eMarketer predicting that spending on digital video advertisements will increase by double digits annually through 2020, it’s no wonder Adobe Systems Inc. has decided to join the fray.

The technology giant today inked an agreement to buy TubeMogul Inc., a publicly traded company that helps brands buy and manage broadcast ad inventory, for about $540 million net of cash and debt. Adobe’s offer values the firm at $14 per share, a more than 75 percent premium to its last closing price before the deal’s announcement.

The acquisition will enable TubeMogul’s investors to cash out after a tumultuous two years. Shares have falledn from a peak of $22 per share in December 2014 to less than $8 Wednesday.

Adobe, meanwhile, stands to gain a tried and tested video advertising platform that is used by Johnson & Johnson, Kraft Foods Group Inc. and many other of its top clients. The company will integrate TubeMogul service into its Marketing Cloud to provide what Executive Vice President Brad Rencher described as a one-stop shop for managing promotional campaigns.

Once the deal completes, brands will be able to use Adobe’s Premiere video editing software to create advertisements, distribute them via TubeMogul and deliver them across different screen types using its Primetime service. The acquisition will round out the multi-channel capabilities of Marketing Cloud, which already cover search, social media and display advertising. The addition will up the ante against rivals such as Salesforce.com Inc. have also been building out their advertising features recently.

In May, the software as a service giant struck a landmark deal with Google to help joint customers target the ads they show on its search engine, Gmail and YouTube more effectively. Then about two weeks later, SAP SE introduced a homegrown advertising platform that lets brands handpick the outlets that will carry their promotions and negotiate terms directly.

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