Feeds

Macromedia to merge with Adobe

Flash + PDF = ?

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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?

Choosing a cloud hosting partner with confidence

More from The Register

next story
UNIX greybeards threaten Debian fork over systemd plan
'Veteran Unix Admins' fear desktop emphasis is betraying open source
Preview redux: Microsoft ships new Windows 10 build with 7,000 changes
Latest bleeding-edge bits borrow Action Center from Windows Phone
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
Redmond top man Satya Nadella: 'Microsoft LOVES Linux'
Open-source 'love' fairly runneth over at cloud event
Google+ goes TITSUP. But WHO knew? How long? Anyone ... Hello ...
Wobbly Gmail, Contacts, Calendar on the other hand ...
Chrome 38's new HTML tag support makes fatties FIT and SKINNIER
First browser to protect networks' bandwith using official spec
Admins! Never mind POODLE, there're NEW OpenSSL bugs to splat
Four new patches for open-source crypto libraries
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.