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Avid to Acquire Pinnacle for $462M - TvTechnology

Avid to Acquire Pinnacle for $462M

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
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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 Mountain View, Calif.-based Pinnacle will receive .0869 shares of Avid stock and $1 in case for each share of Pinnacle.

Avid, based in Tewksbury, Mass., expects to have $280-$300 million in cash by the end of 2005.

David Krall, CEO, Avid said that the acquisition is the next logical step on the company's long-term strategy.

"Just as our acquisition of M-Audio in 2004 brought us into the consumer audio business, by acquiring Pinnacle's consumer video business, Avid will be able to tap into the next generation of video editors while they are still learning their craft."

The board of directors of both companies approved the agreement.