Adobe Systems Inc. announced it will acquire Macromedia for $3.4 billion, all of which will be in company stock purchases. Spokespeople from both firms say the deal, which is slated to close in the fourth quarter of this year, will create a larger and more dynamic company—still called Adobe Systems—with more than 5,000 employees around the world (some positions may be eliminated due to duplication in job functions), and cash holding and short-term investments totaling more than $1.8 billion.
Adobe, known principally for its Acrobat document-sharing product, will expand into the animated graphics field with the acquisition of Macromedia and its popular Flash software. “Adobe’s mission remains the same – to help people and businesses communicate better,” company officials said in a statement provided to CertMag EXTRA. “With the acquisition of Macromedia, Adobe strengthens its mission through the combination of leading-edge development, authoring and collaboration tools—and the complementary functionality of PDF and Flash. Going forward, the combined company has the opportunity to define a robust technology platform that delivers compelling, rich content across a wide range of devices and operating systems.”
The purchase will facilitate the realization of four main goals, company officials explained. These include offering customers a broad set of tools, services and solutions for design, digital media, documents and collaboration; accelerating the expansion of combined business models; developing new market opportunities around mobile and enterprise solutions that build upon their respective platforms; and enabling the deployment of an industry-defining, cross-media, rich-client technology platform across multiple operating systems and devices through the complementary functionality of Macromedia Flash and Adobe PDF.
Although this move is not a merger, Macromedia’s stockholders will retain a stake in the new company, as they will own 18 percent of combined firm on a pro forma basis. In addition, Stephen Elop, Macromedia’s current president and CEO, will assume the role of president of worldwide field operations at Adobe Systems after the deal closes. Bruce Chizen, CEO of Adobe, will maintain his position following the acquisition.
Neither company could comment on any alterations, additions or removals to products, services or certifications because both will be conducting business as usual until the transaction closes later this year.
For more information, see http://www.adobe.com.