atw: ANN: Adobe to buy Macromedia

From other lists tonight:

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From MarketWatch, online at:

http://www.marketwatch.com/news/story.asp?guid=3D%7B3B04AC26%2DE1ED%2D4FA=
3
%2D8E72%2D9C493CADC469%7D&siteid=3Dmktw&dist

ADOBE SYSTEMS TO BUY MACROMEDIA

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4/18/2005 3:46:38 AM

By Emily Church

3:46 AM ET Apr 18, 2005
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LONDON (MarketWatch) -- Adobe Systems on Monday, seeking to expand in
audio and video graphics software applications for Web sites, announced
an agreement to buy Macromedia in a stock-based deal valued at $3.4
billion.

The terms, approved by boards of both software developers, set a 25%
premium for Macromedia shares, based on the stock's close on Friday at
$33.45. Macromedia holders are to receive 0.69 shares of Adobe for every
share of Macromedia .

Adobe  didn't detail cost-savings estimates; the deal is expected to
close this fall. Adobe Chief Executive Bruce Chizen will remain CEO of
the combined companies.

"By combining our powerful development, authoring and collaboration
software -- along with the complementary functionality of PDF and Flash
-- Adobe has the opportunity to bring this vision to life with an
industry-defining technology platform," Chizen said in a prepared
statement.

Separately, Adobe said it expects earnings and sales in its June
3-ending quarter "toward the high end" of its targeted range amid
"strong demand of Adobe Acrobat."
Adobe had set the range at revenue of $475 to $495 million and earnings
per share of
51 cents to 55 cents. Adobe said it's "experiencing solid demand in all
of its major geographic markets."

However, citing the lack of estimates on costs related to the Macromedia
deal and stock-based compensation expenses, Adobe said it was unable to
provide an outlook for estimates on future earnings.

Adobe's board approved a stock buyback plan worth $1 billion,
post-acquisition.
Adobe shares closed Friday at $60.66, down 4.4% on the day.


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Rhonda Bracey
rhonda.bracey@xxxxxxxxxxxxxxxx=20
http://www.cybertext.com.au
AuthorIT Certified Consultant
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