Feeds

Macromedia to merge with Adobe

Flash + PDF = ?

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Graphics and publishing software specialists Adobe and Macromedia are to merge, the companies said today.

The acquisition will see the target firm's shareholders offered 0.69 Adobe shares for every Macromedia share, valuing the latter at $41.86 a pop, a premium over this past Friday's $33.45 closing price. The whole deal is valued at $3.4bn.

Both companies' boards have approved the deal, which will see Adobe CEO Bruce Chizen continue to run the joint operation, answering to a board led by Adobe co-chairmen and co-founder Charles Geschke and John Warnock. Macromedia's chairman, Rob Burgess, will also join the joint firm's board. Macromedia president CEO Stephen Elop will head the merged business' worldwide field operations. Adobe's Shantanu Narayen will stay on as president and COO. Murray Demo will remain executive VP and CFO.

Chizen said the merger will mean cost savings as the two companies' workforces are streamlined, but he stressed the motivation behind the merger was to expand and grow their business by integrating their respective product lines.

How that will pan out remains to be seen. It's not hard to imagine Macromedia's alternative to Adobe Illustrator, FreeHand, being phased out, for example. But Macromedia's ownership of Flash, the de facto web animation standard, when combined with Adobe's PDF e-document format, and the authoring tools that go with both media, will position the merged company as a powerhouse for graphics and publishing, both physical and electronic, going forward.

The acquisition, which is expected to close this coming Autumn, is subject to customary closing conditions, including approval by the stockholders of both companies and the nod from regulators.

The transaction will be accounted for under purchase accounting rules, the partners said. The transaction is currently expected to be break-even to slightly accretive to earnings in the first twelve months after closing on a non-GAAP basis assuming no adverse impact from the loss of deferred revenue in the first 12 months following the close due to purchase accounting, they said.

Adobe said it could not provide a forecast of the deal's impact on GAAP earnings due to "the absence at this time of estimates of the acquisition-related restructuring costs and the allocation of the purchase price between goodwill, in-process R&D, other intangibles and equity-based compensation expenses". ®

Related stories

Adobe opens source code kimono
US software pirate jailed for 18 months
Adobe shares dip despite Q4 profit surge
Adobe patches Acrobat, Reader flaws
Whatdya mean, free software?

Security for virtualized datacentres

More from The Register

next story
'Windows 9' LEAK: Microsoft's playing catchup with Linux
Multiple desktops and live tiles in restored Start button star in new vids
Not appy with your Chromebook? Well now it can run Android apps
Google offers beta of tricky OS-inside-OS tech
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
iOS 8 release: WebGL now runs everywhere. Hurrah for 3D graphics!
HTML 5's pretty neat ... when your browser supports it
Greater dev access to iOS 8 will put us AT RISK from HACKERS
Knocking holes in Apple's walled garden could backfire, says securo-chap
NHS grows a NoSQL backbone and rips out its Oracle Spine
Open source? In the government? Ha ha! What, wait ...?
Google extends app refund window to two hours
You now have 120 minutes to finish that game instead of 15
Intel: Hey, enterprises, drop everything and DO HADOOP
Big Data analytics projected to run on more servers than any other app
SUSE Linux owner Attachmate gobbled by Micro Focus for $2.3bn
Merger will lead to mainframe and COBOL powerhouse
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.