QuarkVSInDesign.com Archive

The Following is Archived and Preserved from QuarkVSInDesign.com, 2003–2009.

It's A Go!

U.S. Department of Justice gives the all clear to Adobe-Macromedia merger.

Adobe and Macromedia logos
DOJ stamp of approval leaves few obsta­cles to merg­er.

In a joint press released issued late this after­noon, Adobe Systems Incorprated (Nasdaq: ADBE) and Macromedia, Incorporated (Nasdaq: MACR) announced that they have received clear­ance from the U.S. Department of Justice in Adobe’s pro­posedand now all but immi­nentacqui­si­tion of Macromedia.

On April 18, 2005, Adobe announced a defin­i­tive agree­ment to acquire Macromedia in an all-stock trans­ac­tion. Pursuant to the terms of the acqui­si­tion agree­ment, hold­ers of Macromedia com­mon stock will receive 1.38 shares of Adobe com­mon stock for each share of Macromedia com­mon stock they own at the clos­ing of the acqui­si­tion. In August, the stock­hold­ers of each com­pa­ny vot­ed in favor of the trans­ac­tion.

The April announce­ment prompt­ed a DOJ inves­ti­ga­tion of the pro­posed acquis­tion based on the fact that both com­pa­nies pro­duce prod­ucts and tech­nolo­gies that com­pete in cer­tain mar­ketsmost notably the Web design are­na with Adobe’s GoLive and Macromedia’s Dreamweaver desk­top appli­ca­tions.

Although the reg­u­la­to­ry approval in European juris­dic­tions is still pend­ing, the U.S. DOJ stamp of approval makes the merg­er almost a cer­tain­ty. The par­ties antic­i­pate clos­ing the deal some­time this Fall. No word has been giv­en about the terms of the DOJ approval, and whether the com­pa­nies will first be required to divest com­pet­ing prod­ucts such as GoLive or Dreamweaver, or Illustrator or Freehand.

Adobe, Macromedia, merg­er, Dreamweaver, GoLive, Illustrator, Freehand, Flash, PDF

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