Our dearest Adobe Systems Inc. announced this morning that it has agreed to buy "Web King" Macromedia, Inc. in a deal worth $3.4 BILLION in stock.
[So who can guess the new name? Acromedia? Adomedia? Macrobe? Macrodobe?]
The deal values Macromedia���s share at $41.86, 25% higher than Friday���s closing price of $33.45. Adobe also plans to buy back $1 billion of stock after the purchase. Adobe Systems��� CEO, Bruce Chizen, will retain his position, while Macromedia���s Stephen Elop will become president of worldwide field operations, Adobe announced.
"The primary motivation for the two companies' joining is to continue to expand and grow our business into new markets,''
[I bet! Talk about a monopoly! I am not sure if this is a good thing or not yet. My guess is, NOT.]
"While we anticipate the integration team will identify opportunities for cost savings by the time the acquisition closes, the primary motivation for the two companies' joining is to continue to expand and grow our business into new markets," Mr. Chizen said.
Adobe said it expects the transaction to be "break- even to slightly accretive to earnings" in the first 12 months. It expects the deal to close in the fall of this year.
The deal still requires shareholder and regulatory approval.
[Hang on folks...gonna be a wild ride this year!]
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