Archive notice: This article was originally published on August 10, 2005. Links and embedded videos are preserved as part of the historical record.
The acquisition of Pinnacle Systems by Avid Technology has been completed: As Avid announced today, the company will issue approximately 6.2 million shares to Pinnacle’s shareholders and option holders and pay them US$71.3 million in cash. At the close of trading, trading in Pinnacle shares is to be discontinued and the company Pinnacle is to be removed from the NASDAQ listing.
“Broadcasters who are currently in the transition phase from analog to digital technology now have an even broader range of Avid solutions to choose from, and in a few months they will be able to experience even stronger integration between Pinnacle’s broadcast products and Avid’s ‘end-to-end’ solution for digital production environments,” explains David Krall, president and CEO of Avid: “At the same time, we have established a new consumer division that will continue to consolidate Pinnacle’s position as market leader in the fast-growing consumer video market. With Pinnacle as a new member of the Avid family of companies, we are further consolidating our position as a leading manufacturer of products and services for creators of digital content.”
As part of the integration process, Pinnacle’s broadcast products – including the on-air graphics systems of the Deko range and the Mediastream playout servers – are to become part of Avid’s video division. It will continue to be managed from Tewksbury, Massachusetts. Avid will likewise continue to develop the Pinnacle Liquid family and market it through both the Avid video division and the consumer division.
The new consumer segment will retain the Pinnacle Systems name and be managed from Mountain View, California. There, Pinnacle’s consumer products such as Pinnacle Studio and the PCTV series will be developed and distributed. Jeff Hastings, formerly Chief Operating Officer at M-Audio, which Avid acquired in August 2004, will become Vice President and General Manager of the new Pinnacle Systems Division. Before his time at M-Audio, Hastings held a number of senior positions at various consumer electronics companies. These include Rio Audio, where he served as president, as well as Sonic Blue and ReplayTV.
