The deal is expected to close by the third quarter of 2005

The cash and stock deal is expected to close by the third quarter of 2005, subject to the approval of regulators and shareholders

Avid announced this week that it is acquiring Pinnacle in a deal that includes a stock and cash transaction. The $462 million deal--of approximately $6.2 million shares and $71.3 million in cash--is based on Avid's March 18 closing stock price of $62.95 and is expected to be complete by July. Shareholders of

Avid Technology and Pinnacle Systems announced on Monday that Avid has entered into a definitive agreement to acquire Pinnacle in a cash and stock transaction. The acquisition is subject to satisfying a number of closing conditions, including shareholder and regulatory approvals, and is expected to close in the second or third quarter of 2005.

The purchase price represents a 30 percent premium over Pinnacle's closing stock price of $4.97 on March 18.

The deal is valued at $462 million

Avid's acquisition of Pinnacle Systems was approved this week by both company's shareholders, days after Pinnacle rejected an eleventh hour offer by San Francisco-based private investor, Vector Capital. In March, Avid agreed to purchase the video editing technology manufacturer in a deal valued at $462 million. Si

The European Commission has given its regulatory blessing to Avid on its proposed acquisition of Pinnacle, which should be complete by Aug. 9, 2005. In July, the deal was approved by both company's shareholders, days after Pinnacle rejected an eleventh hour offer by San Francisco-based private investor, Vector Cap