Avid Technology, Inc. to Acquire Pinnacle Systems, Inc.

[RaySigmond]

Avid Technology, Inc. and Pinnacle Systems, Inc. today announced that Avid has entered into a definitive agreement to acquire Pinnacle in a cash and stock transaction. Under the terms of the agreement, Pinnacle shareholders will receive .0869 shares of Avid stock and $1.00 in cash for each Pinnacle share. At closing, it is expected that Avid will issue approximately 6.2 million shares and pay $71.3 million in cash, for a total estimated value of $462 million based on Avid’s stock price of $62.95 at market close on Friday, March 18, 2005. Upon completion of the transaction, the 6.2 million shares to be issued to Pinnacle’s former shareholders will represent approximately 15% of Avid’s outstanding common stock. The acquisition is subject to satisfying a number of closing conditions, including shareholder and regulatory approvals, and is expected to close in the second or third quarter of 2005.

http://www.digitalproducer.com/articles/viewarticle.jsp?id=31386

 

[Shaw]

Wow, crazy. Why would Avid want to acquire Pinnacle? Just to eleminate a competitor? Then again, I never thought of Pinnacle as a competitor to Avid in any seriour manner.

 

[alpi69]

i guess Liquid gets 24p and then Avid can get thrown out the window ;-)

 

[MichaelP]

But wait... Liquid is Avid... so how could it get thrown out the window?

 

[David Jimerson]

Liquid is Avid? Did Pinnacle get its Liquid line from Avid? If so, I didn’t know that.

 

[MichaelP]

No, Liquid came from FAST I belive. I was just making a joke that you can't throw out Avid if you get Liquid... SInce Avid is the company name, not th actual product of which Pinnacle products are now a part of...

 

[jchenier]

I'm just guessing, but they'll likely use Pinnacle as their consumer line (with some AVID branding... Pinnacle by AVID) and use AVID as their pro line.

Justin
www.beyondtimemedia.com