Feeds

Macromedia to merge with Adobe

Flash + PDF = ?

  • alert
  • submit to reddit

Combat fraud and increase customer satisfaction

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?

3 Big data security analytics techniques

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Inside the Hekaton: SQL Server 2014's database engine deconstructed
Nadella's database sqares the circle of cheap memory vs speed
Oh no, Joe: WinPhone users already griping over 8.1 mega-update
Hang on. Which bit of Developer Preview don't you understand?
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
Half of Twitter's 'active users' are SILENT STALKERS
Nearly 50% have NEVER tweeted a word
Internet-of-stuff startup dumps NoSQL for ... SQL?
NoSQL taste great at first but lacks proper nutrients, says startup cloud whiz
IRS boss on XP migration: 'Classic fix the airplane while you're flying it attempt'
Plus: Condoleezza Rice at Dropbox 'maybe she can find ... weapons of mass destruction'
OpenSSL Heartbleed: Bloody nose for open-source bleeding hearts
Bloke behind the cockup says not enough people are helping crucial crypto project
Ditch the sync, paddle in the Streem: Upstart offers syncless sharing
Upload, delete and carry on sharing afterwards?
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.