Adobe Systems has announced a definitive agreement to acquire Macromedia in an all-stock transaction valued at approximately $3.4 billion.
Under the terms of the agreement, which has been approved by both boards of directors, Macromedia stockholders will receive, at a fixed exchange ratio, 0.69 shares of Adobe common stock for every share of Macromedia common stock in a tax-free exchange. Based on Adobe’s and Macromedia’s closing prices on Friday, April 15, 2005, this represents a price of $41.86 per share of Macromedia common stock. That is a 25 percent premium to Macromedia’s closing price of $33.45 on Friday. Upon the close of the transaction, Macromedia stockholders will own approximately 18 percent of the combined company on a pro forma basis.
Now I started out with a Macromedia toolkit, back when Freehand was in version 5.0, and have mostly stuck by Macromedia throughout. My favourite programme for Web GUI design is Fireworks, and actually dislike ImageReady because it seems too much for what I want to do.
So for me this is kind of heartbreaking to contemplate, because it means Fireworks will die in favour of ImageReady.
:sigh: I think I’ll go buy a copy of the software now, because it will disappear soon enough.
This is quite saddening.
Now Adobe is going to be a behemoth, owning almost every kind of popular web development tool… did I mention I think they’re hideously expensive?