Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.
Adobe to acquire Macromedia
Posted on 18-Apr-2005 20:09. | Tags Filed under: News.



Adobe Systems Incorporated has announced a definitive agreement to acquire Macromedia in an all-stock transaction valued at approximately US$3.4 billion.

The companies plan to meet a wider set of customer needs and have a significantly greater opportunity to grow into new markets, particularly in the mobile and enterprise segments.

"Customers are calling for integrated software solutions that enable them to create, manage and deliver a wide range of compelling content and applications -- from documents and images to audio and video," said Bruce Chizen, chief executive officer of Adobe. "By combining our powerful development, authoring and collaboration software -- along with the complementary functionality of PDF and Flash -- Adobe has the opportunity to bring this vision to life with an industry-defining technology platform."

Under the terms of the agreement, which has been approved by both boards of directors, Macromedia stockholders will receive, at a fixed exchange ratio, 0.69 shares of Adobe common stock for every share of Macromedia common stock in a tax-free exchange. Based on Adobe's and Macromedia's closing prices on Friday, 15 April 2005, this represents a price of US$41.86 per share of Macromedia common stock. Upon the close of the transaction, Macromedia stockholders will own approximately 18 percent of the combined company on a pro forma basis.

In the combined company, Chizen will continue as chief executive officer and Shantanu Narayen will remain president and chief operating officer. Stephen Elop, president and chief executive officer of Macromedia, will join Adobe as president of worldwide field operations. Murray Demo will remain executive vice president and chief financial officer. Dr. John Warnock and Dr. Charles Geschke will remain as co-chairmen of the Board of Directors of the combined company and Rob Burgess, chairman of the Macromedia Board of Directors, will join the Adobe Board.

The two companies are developing integration plans and there will be additional details and information about the acquisition available at the Adobe website at later date.

"While we anticipate the integration team will identify opportunities for cost savings by the time the acquisition closes, the primary motivation for the two companies' joining is to continue to expand and grow our business into new markets," said Chizen.

Adobe also announced its Board of Directors has approved a post-acquisition stock repurchase program of US$1 billion. "After a review of the combined companies' financial position, our Board concluded that the repurchase program is consistent with our overall commitment to deliver value to our stockholders," Chizen added.

The repurchase program is in addition to the Adobe's existing stock repurchase programs and is expected to commence following the completion of the acquisition. The repurchases will be funded from available working capital.




comments powered by Disqus




Trending now »

Hot discussions in our forums right now:

Good riddance to Obama and his drones. Pakistani villagers will be saying the same.
Created by amiga500, last reply by Geektastic on 21-Jan-2017 22:45 (87 replies)
Pages... 4 5 6


The President Of The USA: Donald Trump
Created by TimA, last reply by Fred99 on 21-Jan-2017 22:58 (1830 replies)
Pages... 120 121 122


Xtra email no longer receives on Outlook 2003 / Outlook 2011 for MAC
Created by lNomNoml, last reply by hio77 on 21-Jan-2017 22:59 (41 replies)
Pages... 2 3


$1160 for a car battery??!!
Created by jonathan18, last reply by k1w1k1d on 21-Jan-2017 17:11 (56 replies)
Pages... 2 3 4


Lost Mp3 collection, how to rebuild on the cheap (legally)?
Created by TeaLeaf, last reply by kickintheeye on 18-Jan-2017 23:05 (18 replies)
Pages... 2


New Ford Mustang or Holden Commodore or alternatives
Created by MikeB4, last reply by driller2000 on 21-Jan-2017 12:39 (63 replies)
Pages... 3 4 5


Upsize my American houses to McMansion value deal.
Created by kingdragonfly, last reply by richms on 18-Jan-2017 15:48 (14 replies)

Spec check on laptop for GoPro editing please
Created by martyyn, last reply by richms on 20-Jan-2017 17:23 (13 replies)