Apr 18, 2005

Adobe Chizen Targets New Markets With Macromedia Deal

Source: Forbes
Written by Chris Noon, 04.18.05, 9:23 AM ET

Another brick in the wall: You know Adobe Systems (nasdaq: ADBE ) for its handy Acrobat and Photoshop programs that beautify desktop publishing with nifty fonts and applications. The leading graphics and software company is now to acquire (Macromedia (nasdaq: MACR), known for its Flash Player and Shockwave Player, in an all-stock transaction valued at approximately $3.4 billion, the companies announced today. Macromedia stockholders will receive 0.69 Adobe shares for every Macromedia share they own. Pending the approval of U.S. regulators, the transaction is expected to be completed by fall. Adobe Chief Executive Bruce Chizen, who will remain as chief executive of the new company, is hoping the merger will allow the two companies to team up to create more powerful software programs that can be used across multiple operating systems. “The primary motivation for the two companies joining is to continue to expand and grow our business into new markets,” Chizen said.

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