Adobe Systems today announced that it has reached an agreement to buy Macromedia for $ 3.4 billion in shares, in an operation aimed at extending its leadership in the electronic document creation and distribution market.
Known for its applications in the area of editing and imaging, Adobe says in a statement that the deal will help it better meet the needs of consumers, who ask for a greater number of applications, including devices and audio and video.
By purchasing Macromedia, Bruce Chizen, Adobe’s chief executive, says he is reducing the company’s reliance on Acrobat, which is used primarily to read documents on the Internet. Macromedia’s Flash Player, which displays moving images and sound on the Internet, is installed on more than 98 percent of personal computers.
Under the terms of the agreement, Macromedia shareholders will receive (for each bond held) 0.69 Adobe shares, valued at $ 41.86 at the closing price of Nasdaq bonds, last Friday. The transaction values Macromedia 25 percent above the closing price of the last session.
According to the source, Bruce Chizen of Adobe will maintain the functions exercised today, while Stephen Elop, of Macromedia, will take the place of president of world operations.
In addition to the announcement of the purchase of Macromedia, Adobe also said today that it expects profits for the second fiscal quarter to be in the highest range of its estimates, after having registered a «strong demand» for Acrobat.
2005-01-06 – Adobe releases version 7 of Adobe Reader with beta version for Linux
2003-09-30 – Adobe introduces new tool for the creative design market