Adobe to acquire Macromedia for USD 3.4 Billion

Adobe to acquire Macromedia for USD 3.4 Billion

This might be the deal of this century. Two of the biggest software developers in the world and makers of some of the most popular applications for the web and print media are involved, as Adobe would be acquiring Macromedia in a deal worth around USD 3.4 Billion. The companies announced this proposed deal today.

As per the terms of the proposal, Macromedia stockholders will receive 0.69 shares of Adobe common stock for every share of their Macromedia common stock. As a result, Macromedia stockholders would end up owning around 18 percent of the combined company when the deal closes.

The deal would require approval from the federal regulators as well as the shareholders of the two companies. Adobe specializes in documentation software and makes the very popular Photoshop application suites. Macromedia on the other hand is known mostly for their web applications like Dreamweaver and Flash/Director.

The acquisition would combine the two powerhouses, which might result in a mega corporation, which would probably develop the next generation applications for the developers around the world. For web developers it would mean better integration between some of the highly used applications in their workspace leading to a more productive environment.