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 proposed–and now all but imminent–acquisition 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 markets–most 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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