Adobe Acquires Allegorithmic: Substance joins Creative Cloud.

Adobe has just acquired Allegorithmic, makers of Substance, the industry leading 3D textures and material creation tool in game and post-production. By combining Allegorithmic’s Substance 3D design tools with Adobe’s Creative Cloud tools, Adobe reflects a trend the company has had in moving more into 3D, and also seeing the value in tools that have a strong pedigree with video game creators.

“We are seeing an increasing appetite from customers to leverage 3D technology across media, entertainment, retail and marketing to design and deliver fully immersive experiences,” said Scott Belsky, chief product officer and executive vice president, Creative Cloud, Adobe. “Creative Cloud is the creativity platform for all and Substance products are a natural complement to existing Creative Cloud apps that are used in the creation of immersive content, including Photoshop, Dimension, After Effects and Project Aero.”

Allegorithmic is based in France and has a diverse customer base across gaming, film and television, ecommerce, retail, automotive, architecture, design and advertising industries, including leading creative brands like Electronic Arts, Ubisoft, BMW, Ikea, Louis Vuitton, Foster + Partners and more. Allegorithmic is the leader in 3D material and texture authoring for most AAA1 gaming franchises, including Call of Duty, Assassin’s Creed and Forza, and is used in many award-winning movies, including Blade Runner 2049, Pacific Rim Uprising and others.

“Allegorithmic and Adobe share the same passion for bringing inspiring technologies to creators,” said Sebastien Deguy, CEO and founder, Allegorithmic. “We are excited to join the team, bring together the strength of Allegorithmic’s industry-leading tools with the Creative Cloud platform and transform the way businesses create powerful, interactive content and experiences.”

While Substance really earned its reputation in Games, Adobe will be seeking to expand its use into product design, print and interactive. Adobe has no core 3D animation product, nor a (Ray Tracing) production renderer. While Photoshop has been key to 3D for decades, this is one of Adobe’s biggest moves yet to move into 3D. Substance is a good fit for Adobe, who has been an investor in Allegorithmic for over 2 years now, before moving to a controlling ownership. Allegorithmic’s 140 person team now joins Adobe’s 21,000 employees. Deguy comments that “we’re already hiring, so ping us if you’re in for a new challenge”.

Adobe’s strong track record of successfully integrating acquisitions should accelerate Allegorithmic’s product roadmap and its reach among enterprise, SMB and individual customers. Allegorithmic CEO and founder, Sébastien Deguy will take a leadership role in Adobe’s broader 3D and immersive design efforts as vice president, 3D and Immersive, reporting into Scott Belsky.

Deguy has called the move his “Peter Jackson moment”. Referring to the moment that Jackson, a Director of moderate but creative successes in New Zealand, “became recognized enough to be handed the keys to a mega project the entire world had been looking forward to: bringing the Lord of The Rings trilogy, by J.R.R. Tolkien, to the big screen. The rest is history, similarity…today, I have been given the opportunity to lead Adobe’s 3D initiatives, and to help take them to the next level”.

Deguy started Allegorithmic 17 years ago, and now with Adobe’s support the company will expand its focus and team. “Adobe is bringing Allegorithmic on board so that we can, along with the incredible talent at Adobe which has already been working on 3D projects and research, invent the next generation of 3D creative tools, with Substance as a flagship product, but also combining Adobe’s own current 3D initiatives like Adobe Dimension, and more” commented Deguy. He believes there are strong synergies between Adobe and Allegorithmic in technology, user experience, know-how, marketing, and distribution. “I can’t wait to make these synergies a reality and present to the world what we have in the backlog.”

Allegorithmic tools are already offered as a subscription service to individuals and enterprise customers, and in the future Adobe will focus on expanding the availability of Allegorithmic tools via subscription. Later this year, Adobe will announce an update on new offerings that will bring the full Allegorithmic technology to the  Adobe Creative Cloud.