updated 08:25 am EST, Mon March 21, 2005
Avid to acquire Pinnacle
in a cash and stock transactiond deal valued at $462 million or a 30% premium over Pinnacle's closing stock price of $4.97. Avid said that Pinnacle's professional products will enhance its end-to-end broadcast production pipeline and that the company's consumer video business will form the basis for a new consumer video division. "We see this acquisition as the next logical step in our long-term strategy. Just as our acquisition of M-Audio in 2004 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."