Adobe To Buy Macromedia For $3.4 billion!

Adobe has announced today the signing of the acquiring contract for Macromedia. The transaction consists of a stock exchange, whose value is appraised at 3.4 billion dollars.

The contract approved by both companies’ boards of directors stipulates Macromedia stockholders will receive 0.69 Adobe stocks in exchange of 1 Macromedia stock. In October 2005, when the transaction is concluded, Macromedia stockholders will own 18% of the newly formed company.

The two companies consider that by combining product portfolios, they will be able to provide clients a new set of programs, allowing the new company to penetrate new markets.

Integration plans are already being worked on, and as soon as the details of the new programs will be available, they will be posted on the website

The clients require integrated software solutions which allow them to create, manage and distribute a wide range of content and applications – from documents and images to audio and video content“, said Bruce Chizen, Chief Executive Officer Adobe Systems.

In the new company resulted after Macromedia’s acquiring, Chizen will still be chief executive officer and Shantanu Narayen will remain president and chief operating officer. Stephen Elop, president and chief executive officer of Macromedia, will become President of worldwide field operations for Adobe, and Murray Demo will remain Vice president and chief financial officer.

Today, the companies will hold a conference for investors and financial analysts and more details will be provided.