Archive notice: This article was originally published on March 22, 2005. Links and embedded videos are preserved as part of the historical record.
Broadcast and video specialist Avid has declared its intention to acquire competitor Pinnacle in a cash and share exchange transaction. The purchase price is expected to amount to more than 533 million dollars, including 462 million dollars in Avid shares and 71.3 million dollars in cash.
The Boards of Directors of both Avid and Pinnacle have already approved the takeover plans. Avid will seek the approval of shareholders at the annual meeting; Pinnacle will convene a special meeting to obtain approval. However, the acquisition is still subject to approval by regulatory authorities. Completion is expected in the second or third quarter of 2005.
“We see this acquisition as the next logical step in our long-term strategy,” explains David Krall, President and CEO of Avid: “Just as the acquisition of M-Audio in 2004 brought us into the Consumer Audio Business, by acquiring Pinnacle’s Consumer Video Business we can introduce the next generation of video editors directly to our products – while they are still in training. Avid thus gains enormous potential for future customers. At the same time, we expect that we can seamlessly integrate Pinnacle’s professional broadcast products into Avid’s offering and thus expand our end-to-end broadcast solutions with servers and on-air graphics products.”
Patti Hart, Chairman and CEO of Pinnacle, described the takeover as an “excellent opportunity for continued growth of both companies.” Customers could expect an even richer offering from a company that would be even more future-oriented. The development was a right step for Pinnacle.
