With an expected close date of July 1, 2005, Avid has acquired Pinnacle Systems Inc. in a cash and stock transaction. Pinnacle shareholders will receive 0.0869 shares of Avid stock and $1 in cash for each Pinnacle share. At closing, it is expected that Avid will issue approximately 6.2 million shares and pay $71.3 million in cash, for a total value of $462 million based on Avid’s stock price of $62.95 at market close on March 18, 2005.
Pinnacle purchased Steinberg in January 2003, which was then bought by Yamaha in December 2004. Avid purchased M-Audio in August 2004. Thus, Avid will only be acquiring Pinnacle’s broadcast and graphics capabilities. According to Avid president and CEO, David Krall, “Just as our acquisition of M-Audio 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.”